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Solution for The Manager of a Company Wants to Find a Measure Which He Can Use to Fix the Monthly Wages of Persons Applying for a Job in the Production Department. as an Experimental Project, He Collected Data O - HSC Commerce 12th Board Exam - Mathematics and Statistics

ConceptSequencing in Management Mathematics

Question

The manager of a company wants to find a measure which he can use to fix the monthly wages of persons applying for a job in the production department. As an experimental project, he collected data of 7 persons from that department referring to years of service and their monthly income :

 Years of service 11 7 9 5 8 6 10 Income ( in thousands) 10 8 6 5 9 7 11

Find regression equation of income on the years of service.

Solution

For the given data we have the following table

 Year of service income xy X^2 Y^2 11 10 110 121 100 7 8 56 49 64 9 6 54 81 36 5 5 25 25 25 8 9 72 64 81 6 7 42 36 49 10 11 110 100 121 56 56 469 476 496

Here n =7,∑x=56,∑y=56,∑xy=469,∑x^2=476,∑y^2=496

Now  barx=∑x/n=56/7=8

bary=∑y/n=56/7=8

The regression of y on x is given by

b_yx=(n∑_xy-∑x∑y)/(n∑x^2-(∑x)^2)

=(7xx469-56xx56)/(7xx476-(56)^2)

=(3283-3136)/(3332-3136)

=147/196=0.75

Hence the regression line of y on x is given by

y-bary=b_(yx)(x-barx)

y-8=0.75(x-8)

y-8=0.75x-6.00

y=0.75x+2

or y=3/4x+2

⇒ 4y=3x+8`

Is there an error in this question or solution?

APPEARS IN

2017-2018 (March) (with solutions)
Question 6.1.2 | 3.00 marks
Solution The Manager of a Company Wants to Find a Measure Which He Can Use to Fix the Monthly Wages of Persons Applying for a Job in the Production Department. as an Experimental Project, He Collected Data O Concept: Sequencing in Management Mathematics.
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