By using the data ¯x=25,¯y=30,byx=1.6 and bxy=0.4, find: (a) The regression equation y on x. (b) What is the most likely value of y when x=60? (c) What is the coefficient of correlation between x and y?
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Solution
Let ¯x=25,¯y=30
byx=1.6
bxy=0.6
Repression eqn yon x will be
y−¯y=byx(x−¯x)
y−30=1.6(x−25)
y−30=1.6x−40
y=1.6x−10
Value of y when x = 60
y=1.6×60−10
y=86
Coefficient of correlation between x and y
The correlation coefficient r is the geometric mean of the regression coefficient.