Consider the following relationship between number of pieces

Consider the following relationship between number of pieces of candy
eaten per day and pounds gained per month:
Person   Candy   Pounds
    1         3          6
    2         5          7
    3         1          2
    4         8         10
    5         3          5
    6         3          6
    7         5          7
    8         1          2
    9         8         10
   10        3          5
a. Estimate the OLS regression for pounds (y) vs. candy (x). (Hint: the slopes and
intercepts should be similar to that on a question on the first exam.)
b. Once this is done perform the Breusch-Pagan test for heteroskedasticity to see
if the variance in the error term may depend on the number of pieces of candy
eaten.

Solution

Consider the following relationship between number of pieces of candy eaten per day and pounds gained per month:

Here dependent variable (Y) = pounds

and independent variable (X) = candy

By using MINITAB:

steps : STAT --> Regression --> Regression --> response : pound --> predictor : candy --> Result : second option --> ok

The Regression output is,

Regression Analysis: pounds(y) versus candy(x)

The regression equation is
pounds(y) = 1.71 + 1.07 candy(x)

slope = 1.07

intercept = 1.71

Predictor Coef SE Coef T P
Constant 1.7143 0.4232 4.05 0.004
candy(x) 1.07143 0.09105 11.77 0.000

S = 0.681385 R-Sq = 94.5% R-Sq(adj) = 93.9%

Analysis of Variance

Source DF SS MS F P
Regression 1 64.286 64.286 138.46 0.000
Residual Error 8 3.714 0.464
Total 9 68.000