In a Simple Linear Regression Problem, the Following Statistics Are $$\sum ( x - \bar { x } ) ( y - \bar { y } )$$

question 169

Multiple Choice

In a simple linear regression problem, the following statistics are calculated from a sample of 10 observations: $$\sum ( x - \bar { x } ) ( y - \bar { y } )$$ = 2250, $S _ { x }$ = 10, $\sum x$ = 50, $\sum y$ = 75 The least squares estimates of the slope and y-intercept are respectively:

• A)225 and ? 1117.5.
• B)2.5 and ? 5.
• C)25 and ? 117.5.
• D)25 and 117.5.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Demand

The quantity of a particular good or service that consumers are willing and able to purchase at various prices during a given period of time.

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell and the price of those goods.