Graphing of Scatter Diagram as well as least square lines
In a random model of eight military contracts involving cost overruns, the subsequent information was obtained. X = bid price of the contract (in millions of dollars) and y = cost of overrun (expressed as a percent of the bid price).
x

6

10

3

5

9

18

16

21

y

31

25

39

35

29

12

17

8

1) Draw the scatter diagram for this data.
2) Find the slope, b, and the intercept, a, for the leastsquares line. prepare the equation of the least squares line.
3) Graph the leastsquares line on your scatter diagram.
If an overrun contract was bid at 12 million dollars what does the leastsquares line predict for the cost of overrun (as a percent of bid price)?