A bank is interested in finding out how income affects savings. We assume that yearly savings Y in NOK for a worker when the income is x NOK is a normally distributed stochastic variable with an expectation E(Y) = ?₀ + ?₁x and a standard deviation of 600. The bank examines 5 random observation pairs and finds the following:

Ci = 516 000 i=1 Y Mo = Yz = 52 605 i=1 5 =(x; -2)2 =2.85 . 1010 i=1 5 Syy = ) (Yi -Y)2 = 2.45 . 108 i=1 5 Sxy => (x -2)Yi = 2.64 . 10' i=1