Question

ASAP please

Pop 60 3. Suppose you are given the following information on Sales per store and the Population of the city. Determine the OLS (Ordinary Least Squares) estimates of a linear relationship between Sales per store and Population. Sales 4.900 65 6.500 39 4.500 45 4.900 6.800 10.000 100 70

Answer 1

Solution:- Given, population sales 60 4,900 65 39 6,500 45 4,500 70 4,900 6,800 loo 10,000 0 in the in the ۱) فيه y here, Sales dependa population so, soled dependent variable cy) & population independent variable (x). Therefore, the linear relationship of y be ya atbx where a, b constants. and oLs estimates of a and b cov Cosy) var (2) say- a Ex² x 2 are the ۱۱ زده be 11 → ba m I from → a = ý b* 3

NOW, from the Table given sales ry) pop (1) ey 4 900 60 65 294 3600 6500 422.5 4 225 39 4 500 175.5 1521 45 2025 4900 6800 10000 220.5 476 4900 1000 10000 Total = 379 37.600 2588.5 26271 To calculate X exy , Eu 379 6 - 63.1667 Ž: Totel (M) namber(a) ý = Totally) humber (4) 37.600 6.2667 6 Total exy) to exy = 2588.5 6 431.4167 6 Ś End 26271 Total (22) 6 437 8.5 6 so from a 6" 431,4167 (63.1667 x 6•2667) 4378.5 - (63.1667) 2 0.0915 b^ & from 6 672667 - (0.0915 x 63.1667) a 0.4867 Thang your