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Problem

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Textbook Expert
Textbook ExpertVerified Tutor
16 Nov 2021

Given information

 

The following table shows data on average per capita coffee consumption and heart disease rate in a random sample of countries.

Step-by-step explanation

Step 1.

The slope of a regression line represents rate of change in as changes. As is dependent on , the slope describes predicted values of given . By using the ordinary least squares method, the most common linear regressions, slope, is found by calculating as the covariance of and , divided by sum of squares(variance) of .

 

 

Slope is to be calculated before the y-intercept when using a linear regression, as the intercept is calculated using the slope. The slope of a regression line is used with a t-statistic to test significance of a linear relationship between and .

Intercept indicates the point where it intersects an axis. The slope and intercept define linear relationship between two variables, which can also be used to estimate an average rate of change. Greater the magnitude of the slope, the steeper is line and the greater is rate of change.

 

As per the question, we have a slope of with a y-intercept of . If there’s no any death from heart diseases at all, the -intercept indicates that yearly coffee consumption will be in liters. While the slope has meaning, the -intercept does not make sense.

 

 

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