Cost Accountiung Regression Problem

Please compute the following problem

Use the following table for your problem. X = annual net
income ($ thousands) and Y = annual food expenditures
($ hundreds). The letters A through J represent the
different families. For example family A has annual income of $8,000 and spends $2,200 on food annually.

Family Y X
A 22 8
B 23 10
C 18 7
D 9 2
E 14 4
F 20 6
G 21 7
H 18 6
I 16 4
J 19 6



ACCT321 Chapter Ten Outline Concluded: Page 16 of 16

Required Portion of Problem

1. Compute "a" and "b" for the regression formula. Then show the regression formula. Show all your computations in detail using the applicable formulas.

2. Compute the Coefficient of Determination. Be sure to show all of your computations in detail using the applicable formulas.

3. Compute the Coefficient of Correlation. Be sure to show all of your computations in detail using the applicable formulas.