City government has collected the following data on annual sales tax collections and new car registrations:
Determine the following:
(a) The least-squares regression equation?
(b) Using the results of part (a), find the estimated sales tax collections if new car registrations total 22,000?
(c) The coefficients of correlation and determination?
(a) Least squares equation: Y = –0.158 + 0.1308X.
(b) Y = –0.158 + 0.1308(22) = 2.719 million.
(c) Coefficient of correlation = r = 0.966 coefficient of determination = r2 = 0.934.