Typically one would use statistical software to calculate regression lines, but it is probably a good idea for everyone to compute one regression line by hand.
Show your calculations. Here is the dataset:
Obs. Xi Yi
1 10 16
2 7 12
3 4 8
4 4 4
5 10 20
(Hint: Start by computing X and Y. Add columns to this table for each element of the formula for the slop parameter: Xi-X , Yi-Y , etc...)
In a regression of Y on X,
a. What is your estimate of the slope parameter?
b. What is your estimate of the intercept?
c. Write an interpretation for the slope and the intercept.