Typically one would use statistical software to calculate regression lines, but it is probably a good idea for everyone to compute one regression line by hand.

Show your calculations.  Here is the dataset:

Obs. Xi Yi

1 10 16

2 7 12

3 4 8

4 4 4

5 10 20

(Hint: Start by computing X and Y. Add columns to this table for each element of the formula for the slop parameter: Xi-X , Yi-Y , etc...)

In a regression of Y on X,

a. What is your estimate of the slope parameter?

b. What is your estimate of the intercept?

c. Write an interpretation for the slope and the intercept.