Exhibit 12-10
the Following Information Regarding a Dependent Variable Y

Essay

Exhibit 12-10
The following information regarding a dependent variable Y and an independent variable X is provided.
$$\begin{array} { l } \mathrm { n } = 4 \\\Sigma \mathrm { X } = 16 \\\Sigma \mathrm { Y } = 28 \\\Sigma \mathrm { Y } - { \bar { Y )} } \mathrm { X } - \bar { X } ) = - 8 \\\Sigma \mathrm { X } - \bar { X } ) ^ { 2 } = 8 \\\mathrm { SST } = 42 \\\mathrm { SSE } = 34\end{array}$$
-Assume you have noted the following prices for paperback books and the number of pages that each book contains.
$$\begin{array} { c c c } \text { Book } &\text { Pages} \mathbf{x} \text { ) } &\text { Price } \mathbf{y)} \\\text { A } & 500 &\$ 7.00 \\\mathrm {~B} & 700 & 7.50 \\\mathrm { C } & 750 & 9.00 \\\mathrm { D } & 590 & 6.50 \\\mathrm { E } & 540 & 7.50 \\\mathrm {~F} & 650 & 7.00 \\\mathrm { G } & 480 & 4.50\end{array}$$
a. Develop a least-squares estimated regression line.
b. Compute the coefficient of determination and explain its meaning.
c. Compute the correlation coefficient between the price and the number of pages. Test to see if x and y are related. Use ? = 0.10.