Use the information given in question 61 to calculate the standard error of the residual. Briefly explain how we can use the standard error of the residual as a measure of the goodness of fit.

Question 61

A market researcher is interested in who buys Fun Time Cereal. In order to analyze this problem, she collects data on the age of the consumer and how many boxes that person consumes each month.

(a) Compute the correlation between age and number of boxes of cereal consumed (and presumably purchased).

(b) Use the method of least squares to estimate α and β.

Transcribed Image Text:

Age 10 16 22 35 45 Boxes per month 600 420 8 5 2