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Appendix C.1 Measures of Central Tendency and Dispersion A85

Appendix C: Concepts in Statistics

C.1 Measures of Central Tendency and Dispersion
Mean, Median, and Mode What you should learn
Find and interpret the mean, median, and
In many real-life situations, it is helpful to describe data by a single number that
mode of a set of data.
is most representative of the entire collection of numbers. Such a number is
Determine the measure of central tendency
called a measure of central tendency. The most commonly used measures are that best represents a set of data.
as follows. Find the standard deviation of a set of
data.
1. The mean, or average, of n numbers is the sum of the numbers divided by n.
Use box-and-whisker plots.
2. The median of n numbers is the middle number when the numbers are written
in numerical order. If n is even, the median is the average of the two middle Why you should learn it
numbers. Measures of central tendency and dispersion
3. The mode of n numbers is the number that occurs most frequently. If two provide a convenient way to describe and
compare sets of data. For instance, in Exercise
numbers tie for most frequent occurrence, the collection has two modes and is 34 on page A93, the mean and standard
called bimodal. deviation are used to analyze the prices of
gold for the years 1982 through 2005.

Example 1 Comparing Measures of Central Tendency

On an interview for a job, the interviewer tells you that the average annual income
of the companys 25 employees is $60,849. The actual annual incomes of the 25
employees are shown below. What are the mean, median, and mode of the incomes?
$17,305 $478,320 $45,678 $18,980 $17,408
$25,676 $28,906 $12,500 $24,540 $33,450
$12,500 $33,855 $37,450 $20,432 $28,956
$34,983 $36,540 $250,921 $36,853 $16,430
$32,654 $98,213 $48,980 $94,024 $35,671

Solution
The mean of the incomes is
17,305 478,320 45,678 18,980 . . . 35,671
Mean
25
1,521,225
$60,849.
25
To find the median, order the incomes as follows.
$12,500 $12,500 $16,430 $17,305 $17,408
$18,980 $20,432 $24,540 $25,676 $28,906
$28,956 $32,654 $33,450 $33,855 $34,983
$35,671 $36,540 $36,853 $37,450 $45,678
$48,980 $94,024 $98,213 $250,921 $478,320
From this list, you can see that the median income is $33,450. You can also see that
$12,500 is the only income that occurs more than once. So, the mode is $12,500.
Now try Exercise 1.
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A86 Appendix C Concepts in Statistics

In Example 1, was the interviewer telling you the truth about the annual
incomes? Technically, the person was telling the truth because the average is
(generally) defined to be the mean. However, of the three measures of central ten-
dencymean: $60,849, median: $33,450, mode: $12,500it seems clear that
the median is most representative. The mean is inflated by the two highest salaries.

Choosing a Measure of Central Tendency

Which of the three measures of central tendency is most representative of a
particular data set? The answer is that it depends on the distribution of the data
and the way in which you plan to use the data.
For instance, in Example 1, the mean salary of $60,849 does not seem very
representative to a potential employee. To a city income tax collector who wants
to estimate 1% of the total income of the 25 employees, however, the mean is
precisely the right measure.

Example 2 Choosing a Measure of Central Tendency TECHNOLOGY TIP

Which measure of central tendency is most representative of the data given in Calculating the mean and median
each frequency distribution? of a large data set can become
time consuming. Most graphing
a. utilities have mean and median
Number 1 2 3 4 5 6 7 8 9
features that can be used to find
Frequency 7 20 15 11 8 3 2 0 15 the means and medians of data
sets. Enter the data from Example
b. 2(a) in the list editor of a
Number 1 2 3 4 5 6 7 8 9
graphing utility. Then use the
Frequency 9 8 7 6 5 6 7 8 9 mean and median features to
verify the solution to Example
c. 2(a), as shown below.
Number 1 2 3 4 5 6 7 8 9
Frequency 6 1 2 3 5 5 8 3 0

Solution
a. For this data set, the mean is 4.23, the median is 3, and the mode is 2. Of these,
the median or mode is probably the most representative measure.
For instructions on how to use
b. For this data set, the mean and median are each 5 and the modes are 1 and 9 the list feature, the mean feature,
(the distribution is bimodal). Of these, the mean or median is the most and the median feature, see
representative measure. Appendix A; for specific key-
c. For this data set, the mean is 4.59, the median is 5, and the mode is 7. Of these, strokes, go to this textbooks
the mean or median is the most representative measure. Online Study Center.
Now try Exercise 15.

Variance and Standard Deviation

Very different sets of numbers can have the same mean. You will now study two
measures of dispersion, which give you an idea of how much the numbers in a
set differ from the mean of the set. These two measures are called the variance of
the set and the standard deviation of the set.
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Appendix C.1 Measures of Central Tendency and Dispersion A87

Definitions of Variance and Standard Deviation

Consider a set of numbers x1, x2, . . . , xn with a mean of x. The variance
of the set is
x1 x2 x2 x2 . . . xn x2
v
n
and the standard deviation of the set is v is the lowercase Greek
letter sigma).

The standard deviation of a set is a measure of how much a typical number

in the set differs from the mean. The greater the standard deviation, the more the
numbers in the set vary from the mean. For instance, each of the following sets
has a mean of 5.
5, 5, 5, 5, 4, 4, 6, 6, and 3, 3, 7, 7
The standard deviations of the sets are 0, 1, and 2.

5 5 5 52 5 52 5 52
2
1 0
4

4 5 2 4 52 6 52 6 52
2 1
4

3 5 2 3 52 7 52 7 52
3 2
4

Example 3 Estimations of Standard Deviation

Consider the three frequency distributions represented by the bar graphs in
Figure C.1. Which set has the smallest standard deviation? Which has the largest?
Set A Set B Set C

5 5 5
Frequency

Frequency

Frequency

4 4 4
3 3 3
2 2 2
1 1 1

1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 STUDY TIP
Number Number Number
Figure C.1 In Example 3, you may find it
helpful to write each set numeri-
Solution cally. For instance, set A is
Of the three sets, the numbers in set A are grouped most closely to the center and 1, 2, 2, 3, 3, 3, 4, 4, 4,
the numbers in set C are the most dispersed. So, set A has the smallest standard
deviation and set C has the largest standard deviation. 4, 4, 5, 5, 5, 6, 6, 7.

Now try Exercise 17.

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A88 Appendix C Concepts in Statistics

Example 4 Finding a Standard Deviation

Find the standard deviation of each set shown in Example 3.

Solution
Because of the symmetry of each bar graph, you can conclude that each has a
mean of x 4. The standard deviation of set A is

(3 222 312 502 312 222 32

2

17
1.53.
The standard deviation of set B is

23 222 212 202 212 222 232

2

14
2.
The standard deviation of set C is

53 422 312 202 312 422 532

2 TECHNOLOGY TIP

26 Calculating the standard deviation
of a large data set can become
2.22.
time-consuming. Most graphing
These values confirm the results of Example 3. That is, set A has the smallest utilities have statistical features
standard deviation and set C has the largest. that can be used to find different
statistical values of data sets.
Now try Exercise 21.
Enter the data from set A in
Example 3 in the list editor of
a graphing utility. Then use the
The following alternative formula provides a more efficient way to compute one-variable statistics feature to
the standard deviation. verify the solution to Example 4,
as shown below.
Alternative Formula for Standard Deviation
The standard deviation of x1, x2, . . . , xn is given by

x x22 . . . xn2
2
1
x 2.
n

In the figure above, the standard

Because of lengthy computations, this formula is difficult to verify. Conceptually,
deviation is represented as
however, the process is straightforward. It consists of showing that the
x, which is about 1.53. For
expressions
instructions on how to use the

x x2 x2 x2 . . . xn x2
1 one-variable statistics feature,
n see Appendix A; for specific
keystrokes, go to this textbooks
and Online Study Center.

x x22 . . . x n2
2
1
x2
n
are equivalent. Try verifying this equivalence for the set x1, x2, x3 with
x x1 x2 x33.
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Appendix C.1 Measures of Central Tendency and Dispersion A89

Example 5 Using the Alternative Formula

Use the alternative formula for standard deviation to find the standard deviation
of the following set of numbers.
5, 6, 6, 7, 7, 8, 8, 8, 9, 10

Solution
Begin by finding the mean of the set, which is 7.4. So, the standard deviation is

5 26 27 10 38 9 102
2 2 2 2 2
7.42

568
54.76 2.04 1.43.

10
You can use the one-variable statistics feature of a graphing utility to check this
result.
Now try Exercise 27.

A well-known theorem in statistics, called Chebychevs Theorem, states that

at least
1
1 AK 1 MT 3
k2
AL 9 NC 15
of the numbers in a distribution must lie within k standard deviations of the mean. AR 5 ND 2
So, at least 75% of the numbers in a collection must lie within two standard AZ 7 NE 4
deviations of the mean, and at least 88.9% of the numbers must lie within three CA 48 NH 3
standard deviations of the mean. For most distributions, these percents are low. CO 7 NJ 15
For instance, in all three distributions shown in Example 3, 100% of the numbers CT 7 NM 5
lie within two standard deviations of the mean. DC 2 NV 2
DE 2 NY 48
FL 22 OH 30
Example 6 Describing a Distribution GA 13 OK 6
The table at the right shows the number of outpatient visits to hospitals (in HI 2 OR 8
millions) in each state and the District of Columbia in 2003. Find the mean and IA 10 PA 33
standard deviation of the numbers. What percent of the numbers lie within two ID 3 RI 2
standard deviations of the mean? (Source: Health Forum) IL 27 SC 7
IN 15 SD 2
Solution KS 6 TN 10
Begin by entering the numbers in a graphing utility. Then use the one-variable KY 9 TX 32
statistics feature to obtain x 11.12 and 11.10. The interval that contains LA 11 UT 5
all numbers that lie within two standard deviations of the mean is MA 20 VA 11
MD 7 VT 2
11.12 211.10, 11.12 211.10 or 11.08, 33.32.
ME 4 WA 10
From the table you can see that all but two of the numbers (96%) lie in this MI 27 WI 12
intervalall but the numbers that correspond to the numbers of outpatient visits MN 9 WV 6
to hospitals in California and New York. MO 16 WY 1
MS 4
Now try Exercise 35.
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A90 Appendix C Concepts in Statistics

Box-and-Whisker Plots
Standard deviation is the measure of dispersion that is associated with the mean.
Quartiles measure dispersion associated with the median.

Definition of Quartiles
Consider an ordered set of numbers whose median is m. The lower quartile
is the median of the numbers that occur on or before m. The upper quartile
is the median of the numbers that occur on or after m.

Example 7 Finding Quartiles of a Set

Find the lower and upper quartiles of the following set.
34, 14, 24, 16, 12, 18, 20, 24, 16, 26, 13, 27

Solution
Begin by ordering the set.
12, 13, 14, 16, 16, 18, 20, 24, 24, 26, 27, 34
1st 25% 2nd 25% 3rd 25% 4th 25%

The median of the entire set is 19. The median of the six numbers that are less
than 19 is 15. So, the lower quartile is 15. The median of the six numbers that are
greater than 19 is 25. So, the upper quartile is 25.
Now try Exercise 37(a).

Quartiles are represented graphically by a box-and-whisker plot, as shown

in Figure C.2. In the plot, notice that five numbers are listed: the smallest number,
the lower quartile, the median, the upper quartile, and the largest number. Also
Figure C.3
notice that the numbers are spaced proportionally, as though they were on a real
number line.

12 15 19 25 34
Figure C.2
Figure C.4

TECHNOLOGY TIP You can use a graphing utility to graph the box-and- 2.5
whisker plot in Figure C.2. First enter the data in the graphing utilitys list
editor, as shown in Figure C.3. Then use the statistical plotting feature to
set up the box-and-whisker plot, as shown in Figure C.4. Finally, display the
box-and-whisker plot (using the ZoomStat feature), as shown in Figure C.5. 9.8 36.2
For instructions on how to use the list editor and the statistical plotting
0.5
features, see Appendix A; for specific keystrokes, go to this textbooks
Online Study Center. Figure C.5
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Appendix C.1 Measures of Central Tendency and Dispersion A91

The next example shows how to find quartiles when the number of elements
in a set is not divisible by 4.

Example 8 Sketching Box-and-Whisker Plots

Sketch a box-and-whisker plot for each data set.
a. 82, 82, 83, 85, 87, 89, 90, 94, 95, 95, 96, 98, 99
b. 11, 13, 13, 15, 17, 17, 20, 24, 24, 27

Solution
a. This set has 13 numbers. The median is 90 (the seventh number). The lower
quartile is 84 (the median of the first six numbers). The upper quartile is 95.5
(the median of the last six numbers). See Figure C.6.

82 84 90 95.5 99
Figure C.6

b. This set has 10 numbers. The median is 17 (the average of the fifth and sixth
numbers). The lower quartile is 13 (the median of the first five numbers). The
upper quartile is 24 (the median of the last five numbers). See Figure C.7.

11 13 17 24 27
Figure C.7

Now try Exercise 37(b).

C.1 Exercises See www.CalcChat.com for worked-out solutions to odd-numbered exercises.

Vocabulary Check
Fill in the blanks.

1. A single number that is the most representative of a data set is called a _______ of _______ .
2. If two numbers are tied for the most frequent occurrence, the collection has two _______ and is called _______ .
3. Two measures of dispersion are called the ______ and the ______ of a data set.
4. _______ measure dispersion associated with the median.

In Exercises 1 6, find the mean, median, and mode of the 3. 5, 12, 7, 24, 8, 9, 7
data set. 4. 20, 37, 32, 39, 33, 34, 32
1. 5, 12, 7, 14, 8, 9, 7 5. 5, 12, 7, 14, 9, 7
2. 30, 37, 32, 39, 33, 34, 32 6. 30, 37, 32, 39, 34, 32
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A92 Appendix C Concepts in Statistics

7. Reasoning 12. Selling Price The selling prices of 12 new homes built in
(a) Compare your answers in Exercises 1 and 3 with those one subdivision are listed.
in Exercises 2 and 4. Which of the measures of central $525,000 $375,000 $425,000 $550,000
tendency is sensitive to extreme measurements? $385,000 $500,000 $550,000 $425,000
Explain your reasoning.
$475,000 $500,000 $350,000 $450,000
(b) Add 6 to each measurement in Exercise 1 and calculate
(a) Find the mean, mode, and median of the selling prices.
the mean, median, and mode of the revised measure-
ments. How are the measures of central tendency (b) Which measure of central tendency best describes the
changed? prices? Explain.
(c) If a constant k is added to each measurement in a set of 13. Think About It Construct a collection of numbers that
data, how will the measures of central tendency has the following properties. If this is not possible, explain
change? why.
8. Consumer Awareness A person had the following Mean 6, median 4, mode 4
monthly bills for electricity. What are the mean and
median of the collection of bills? 14. Think About It Construct a collection of numbers that
has the following properties. If this is not possible, explain
January $67.92 February $59.84 why.
March $52.00 April $52.50
Mean 6, median 6, mode 4
May $57.99 June $65.35
July $81.76 August $74.98 15. Test Scores An English professor records the following
scores for a 100-point exam.
September $87.82 October $83.18
99, 64, 80, 77, 59, 72, 87, 79, 92, 88, 90, 42, 20, 89, 42,
November $65.35 December $57.00 100, 98, 84, 78, 91
9. Car Rental A car rental company kept the following Which measure of central tendency best describes these
record of the numbers of miles a rental car was driven. test scores?
What are the mean, median, and mode of the data?
16. Shoe Sales A salesman sold eight pairs of mens brown
Monday 410 Tuesday 260
dress shoes. The sizes of the eight pairs were as follows:
Wednesday 320 Thursday 320 10 12, 8, 12, 10 12, 10, 912, 11, and 10 12. Which measure (or
Friday 460 Saturday 150 measures) of central tendency best describes (describe) the
10. Families A study was done on families having six chil- typical shoe size for this data?
dren. The table shows the numbers of families in the study
with the indicated numbers of girls. Determine the mean, In Exercises 17 and 18, line plots of data sets are given.
median, and mode of the data. Determine the mean and standard deviation of each set.
17. (a)
Number of girls 0 1 2 3 4 5 6

8 10 12 14 16
Frequency 1 24 45 54 50 19 7
(b)

11. Bowling Scores The table shows the bowling scores for a
16 18 20 22 24
three-game series of a three-member team.
(c)

Team Game Game Game
8 10 12 14 16
member 1 2 3
(d)
Jay 181 222 196

Hank 199 195 205 4 6 8 10 12

Buck 202 251 235
18. (a)


(a) Find the mean for each team member.
12 14 16 18
(b) Find the mean for the entire team for the three-game
series.
(c) Find the median for the entire team for the three-game
series.
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Appendix C.1 Measures of Central Tendency and Dispersion A93

(b) 36. Think About It The histograms represent the test scores

of two classes of a college course in mathematics. Which
12 14 16 18 histogram has the smaller standard deviation?
(c)
6 6

5 5
22 24 26 28

Frequency

Frequency
4 4
(d)

3 3

2 4 6 8 2 2
1 1
In Exercises 1926, find the mean x , variance v, and
standard deviation of the set. 86 90 94 98 84 88 92 96
Score Score
19. 4, 10, 8, 2 20. 3, 15, 6, 9, 2
21. 0, 1, 1, 2, 2, 2, 3, 3, 4 22. 2, 2, 2, 2, 2, 2 In Exercises 3740, (a) find the lower and upper quartiles of
the data and (b) sketch a box-and-whisker plot for the data
23. 1, 2, 3, 4, 5, 6, 7 24. 1, 1, 1, 5, 5, 5
without using a graphing utility.
25. 49, 62, 40, 29, 32, 70 26. 1.5, 0.4, 2.1, 0.7, 0.8
37. 23, 15, 14, 23, 13, 14, 13, 20, 12
In Exercises 2730, use the alternative formula to find the 38. 11, 10, 11, 14, 17, 16, 14, 11, 8, 14, 20
standard deviation of the set. 39. 46, 48, 48, 50, 52, 47, 51, 47, 49, 53
27. 2, 4, 6, 6, 13, 5 40. 25, 20, 22, 28, 24, 28, 25, 19, 27, 29, 28, 21
28. 246, 336, 473, 167, 219, 359
In Exercises 4144, use a graphing utility to create a
29. 8.1, 6.9, 3.7, 4.2, 6.1 30. 9.0, 7.5, 3.3, 7.4, 6.0
box-and-whisker plot for the data.
31. Reasoning Without calculating the standard deviation,
41. 19, 12, 14, 9, 14, 15, 17, 13, 19, 11, 10, 19
explain why the set 4, 4, 20, 20 has a standard deviation
of 8. 42. 9, 5, 5, 5, 6, 5, 4, 12, 7, 10, 7, 11, 8, 9, 9
32. Reasoning If the standard deviation of a set of numbers 43. 20.1, 43.4, 34.9, 23.9, 33.5, 24.1, 22.5, 42.4, 25.7, 17.4,
is 0, what does this imply about the set? 23.8, 33.3, 17.3, 36.4, 21.8
33. Test Scores An instructor adds five points to each stu- 44. 78.4, 76.3, 107.5, 78.5, 93.2, 90.3, 77.8, 37.1, 97.1, 75.5,
dents exam score. Will this change the mean or standard 58.8, 65.6
deviation of the exam scores? Explain. 45. Product Lifetime A company has redesigned a product in
34. Price of Gold The following data represents the average an attempt to increase the lifetime of the product. The two
prices of gold (in dollars per fine ounce) for the years 1982 sets of data list the lifetimes (in months) of 20 units with
to 2005. Use a computer or graphing utility to find the the original design and 20 units with the new design. Create
mean, variance, and standard deviation of the data. What a box-and-whisker plot for each set of data, and then com-
percent of the data lies within two standard deviations of ment on the differences between the plots.
the mean? (Source: National Mining Association) Original Design
376, 424, 361, 317, 368, 447, 15.1 78.3 56.3 68.9 30.6
437, 381, 384, 362, 344, 360, 27.2 12.5 42.7 72.7 20.2
384, 384, 388, 331, 294, 279, 53.0 13.5 11.0 18.4 85.2
279, 271, 310, 363, 410, 445 10.8 38.3 85.1 10.0 12.6
35. Test Scores The scores on a mathematics exam given to
600 science and engineering students at a college had a New Design
mean and standard deviation of 235 and 28, respectively. 55.8 71.5 25.6 19.0 23.1
Use Chebychevs Theorem to determine the intervals con- 37.2 60.0 35.3 18.9 80.5
3 8
taining at least 4 and at least 9 of the scores. How would the
46.7 31.1 67.9 23.5 99.5
intervals change if the standard deviation were 16?
54.0 23.2 45.5 24.8 87.8
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A94 Appendix C Concepts in Statistics

C.2 Least Squares Regression

In many of the examples and exercises in this text, you have been asked to use the What you should learn
regression feature of a graphing utility to find mathematical models for sets of Use the sum of squared differences to
data. The regression feature of a graphing utility uses the method of least determine a least squares regression line.
squares to find a mathematical model for a set of data. As a measure of how well Find a least squares regression line for a
a model fits a set of data points set of data.
Find a least squares regression parabola
x1, y1, x2, y2 , x3, y3, . . . , xn, yn for a set of data.
you can add the squares of the differences between the actual y-values and the Why you should learn it
values given by the model to obtain the sum of the squared differences. For The method of least squares provides a way
instance, the table shows the heights x (in feet) and the diameters y (in inches) of of creating a mathematical model for a set
eight trees. The table also shows the values of a linear model y* 0.54x 29.5 of data, which can then be analyzed.
for each x-value. The sum of squared differences for the model is 51.7.

x 70 72 75 76 85 78 77 80
y 8.3 10.5 11.0 11.4 12.9 14.0 16.3 18.0
y* 8.3 9.38 11.0 11.54 16.4 12.62 12.08 13.7
y y*2 0 1.2544 0 0.0196 12.25 1.9044 17.8084 18.49

The model that has the least sum of squared differences is the least squares
regression line for the data. The least squares regression line for the data in the
table is y 0.43x 20.3. The sum of squared differences is 43.3.
To find the least squares regression line y ax b for the points x1, y1,
x2, y2 , x3, y3, . . . , xn, yn algebraically, you need to solve the following
system for a and b.

x a y
n n
nb i i
i1 i1

x b x a x y
n n n
2
i i i i
i1 i1 i1

In the system, TECHNOLOGY SUPPORT

n For instructions on how to
x x
i1
i 1 x2 . . . xn use the regression feature,
n
see Appendix A; for specific
y y
i1
i 1 y2 . . . yn keystrokes, go to this textbooks
Online Study Center.
n

x
i1
i
2 x12 x22 . . . xn2

x y x y
i1
i i 1 1 x2 y2 . . . xn yn.

TECHNOLOGY TIP Recall from Section 1.7 that when you use the
regression feature of a graphing utility, the program may output a correlation

coefficient, r. When r is close to 1, the model is a good fit for the data.
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Appendix C.2 Least Squares Regression A95

Example 1 Finding a Least Squares Regression Line

Find the least squares regression line for 3, 0, 1, 1, 0, 2, and 2, 3.

Solution
Begin by constructing a table, as shown below.

x y xy x2
3 0 0 9
1 1 1 1
0 2 0 0
2 3 6 4
n n n n

x 2 y 6 x y 5 x
i1
i
i1
i
i1
i i
i1
2
i 14

Applying the system for the least squares regression line with n 4 produces 8
y = 13 x+ 47
26
5

x a y
n n
nb i i
4b 2a 6
i1 i1
2b 14a 5 .
x b x a x y
n n n
2
i i i i 5 4
i1 i1 i1
8 47 1
Solving this system of equations produces a and b So, the least 13 26 .
8 47
squares regression line is y 13 x 26 , as shown in Figure C.8. Figure C.8

Now try Exercise 1.

The least squares regression parabola y ax 2 bx c for the points

x1, y1, x2, y2, x3, y3, . . . , xn, yn
is obtained in a similar manner by solving the following system of three equations
in three unknowns for a, b, and c.

y
n n n
nc xi b xi 2 a i
i1 i1 i1

x c x b x a x y
n n n n
2 3
i i i i i
i1 i1 i1 i1

x c x b x a x
n n n n
2 3 4 2y
i i i i i
i1 i1 i1 i1

C.2 Exercises See www.CalcChat.com for worked-out solutions to odd-numbered exercises.

In Exercises 1 4, find the least squares regression line for 2. 0, 1, 2, 0, 4, 3, 6, 5

the points. Verify your answer with a graphing utility. 3. 3, 1, 1, 2, 1, 2, 4, 3
1. 4, 1, 3, 3, 2, 4, 1, 6 4. 0, 1, 2, 1, 3, 2, 5, 3