Question

 Companies considering the purchase of a computer must first assess their future needs in order to determine the proper equipment. A computer scientist collected data from seven similar company sites so that computer hardware requirements for inventory management could be developed. The data collected is as follows:

Customer Orders (in thousands) Add-delete items (in thousands) CPU time (in hours)
123.5 2.108 141.5
146.1 9.213 168.9
133.9 1.905 154.8
128.5 0.815 146.5
151.5 1.061 172.8
136.2 8.603 160.1
92.0 1.125 108.5

i) Find a linear regression equation that best fit the data. 

ii) Estimate the error variance for the regression model obtained in i) above. 

10 Jan 2026
Answer :
Word Count : 161
Let CPU time (Y) be the dependent variable, customer orders (X_1) and add–delete items (X_2) the independent variables. Using the normal equations for multiple linear regression based on the seven observations, the required totals are (\sum X_1 = 911.7,; \sum _____ ______ ______ ___ ________ ______.
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