Suppose You Fit a Least Squares Line to 22 Data $s ^ { 2 }$

question 39

Essay

Suppose you fit a least squares line to 22 data points and the calculated value of SSE is
.678. a. Find $s ^ { 2 }$ , the estimator of $\sigma ^ { 2 }$ .
b. Find $s$ , the estimator of $\sigma$ .
c. What is the largest deviation you might expect between any one of the 22 points and the least squares line?

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Definitions:

Interest Payments

the regular payments made by a borrower to a lender, typically a percentage of the outstanding debt, as compensation for the loan or credit provided.

Deferred Gross Profit

The portion of gross profit that is not recognized in the current period due to installment sales or revenue recognition policies.

Installment Sales

The method of recognizing revenue where the payment is received over a period of time in installments, often used in real estate and high-priced consumer goods transactions.

Deduction

An expense that can be subtracted from gross income to reduce the amount of income subject to tax.