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Assignment - IV

The document provides the calculations to derive two regression equations from sales and purchase data. The data includes sales and purchase figures for 10 periods. The regression equation for sales (X) on purchases (Y) is derived as X - 90 = 1.36(Y - 70). The regression equation for purchases (Y) on sales (X) is derived as Y - 70 = 0.613(X - 90). Both equations adequately model the relationship between sales and purchases based on the given data.

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S Vasanth
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207 views

Assignment - IV

The document provides the calculations to derive two regression equations from sales and purchase data. The data includes sales and purchase figures for 10 periods. The regression equation for sales (X) on purchases (Y) is derived as X - 90 = 1.36(Y - 70). The regression equation for purchases (Y) on sales (X) is derived as Y - 70 = 0.613(X - 90). Both equations adequately model the relationship between sales and purchases based on the given data.

Uploaded by

S Vasanth
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Course: Research Tools For Business Decision Making

Class : I year B.Com.LL.B (Hons)

Date : 11.05.2020
Name: M.Shunmalar

Roll no: BC0190044

Assignment - IV

From the following data obtain the two regression equations:

SALES 91 97 108 121 67 124 51 73 111 57

PURCHASE 71 75 69 97 70 91 39 61 80 47

Solution:

Calculation of Regression Equations

̅)
(X-𝑿 ̅)
(Y-𝒀
SALES PURCHASE
̅ = 90
𝑿 x2 ̅ = 𝟕𝟎
𝒀 y2 xy
X Y
x y

91 +1 1 71 +1 1 +1

97 +7 49 75 +5 25 +35

108 +18 324 69 -1 1 -18

121 +31 961 97 +27 729 +837

67 -23 529 70 0 0 0

124 +34 1156 91 +21 441 +714

51 -39 1521 39 -31 961 +1209

73 -17 289 61 -9 81 +153


111 +21 441 80 +10 100 +210

57 -33 1089 47 -23 529 +759

𝚺𝐗 𝚺𝐱𝐲
= 𝟗𝟎𝟎 𝚺𝐱 = 𝟎 𝚺𝐱 𝟐 = 𝟔𝟑𝟔𝟎 𝚺𝐘 = 𝟕𝟎𝟎 𝚺𝐲 = 𝟎 𝚺𝐲 𝟐 = 𝟐𝟖𝟔𝟖 = 𝟑𝟗𝟎𝟎

̅ = bxy(Y-𝑌
Regression equation of X on Y: X-𝑋 ̅)

̅ = Σ𝑋 =
𝑋
900
= 90
N 10

Σ𝑌 700
̅=
𝑌 = = 70
𝑁 10

Σ𝑋 3900
bxy = = = 1.36
Σy2 2868

X-90 = 1.36 (Y-70)

X-90 = 1.36Y - 95.2 (or) X = -5.2 + 1.36Y

̅ = byx (X-𝑋
Regression equation of Y on X: Y-𝑌 ̅)

Σ𝑥𝑦 3900
byx = = = 0.613
Σx2 6360

Y-70 = 0.613(X-90)

Y-70 = 0.613X - 55.17 (or) Y = 14.83+0.613X

X-90 = 1.36Y - 95.2 (or) X = -5.2 + 1.36Y

Y-70 = 0.613X - 55.17 (or) Y = 14.83+0.613X

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