2.What is the difference between a population linear model and an estimatedlinear regression model?3.Compute the coefficients for a least squares regression equation and writethe equation, given the following sample statistics:a.b.c.d.e.=50, =100, =25, =75, =0.6, n=60=60, =210, =35, =65, =0.7, n=60=20, =100, =60, =78, =0.75, n=60=10, =50, =100, =75, =0.4, n=60=90, =200, =80, =70, =0.6, n=604.For a sample of 20 monthly observations a financial analyst wants to regressthe percentage rate of return (Y) of the common stock of a corporation onthe percentage rate of return (X) of the Standard and Poorâs 500 index. Thefollowing information is available:a. Estimate the linear regression of Y on X.b. Interpret the slope of the sample regression line.c. Interpret the intercept of the sample regression line.5.It was hypothesized that the number of bottles of an imported premium beersold per evening in the restaurants of a city depends linearly on the averagecosts of meals in the restaurants. The following results were obtained for asample of n=17 restaurants of approximately equal size wherey= number of bottles sold per eveningx= average cost, in dollars, of a meal=25.5 =16.0 =350=180a. Find the sample regression line.b. Interpret the slope of the sample regression line.c. Is it possible to provide a meaningful interpretation of the intercept ofthe sample regression line? Explain.
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