Donald has a passion for film and enjoys collecting DVDs, but he is also a studentand has to watch his budget. So the amount he spends on them each month depends on how much he earns at his part-time job. Donald believes that the relationship between his income and the amount he spends on DVDs can be expressed as a straight line. Answer the sub-questions using the following notations
1. Donald has a passion for ﬁlm and enjoys collecting DVDs, but he is also a studentand has to watch his budget. So the amount he spends on them each month dependson how much he earns at his part-time job. Donald believes that the relationshipbetween his income and the amount he spends on DVDs can be expressed as a straight line. Answer the sub-questions using the following notations. YXEﬁoﬁi (a) Assuming Y is Donald’s income and X is his DVD expenditures. Write down a regression equation describing the relationship stated in the question(b) Is the choice of notations (X and Y) in question (a) good or bad? Why?
(c) Explain the difference between (i) ,81 and f3; (d) Think of something you do in your everyday life that you would like to estimateusing a regression model. (Make sure it is different from the examples given inthe class.) What are your dependent variable and independent variable(s)? (Ifmore than one independent variable seems important, that’s ﬁne). Write down your own regression equation with deﬁning the variables.
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