Answer: 1) The best estimate for the average cost of tuition at a 4-year institution starting in 2020 =$ 31524.31
2) The slope of regression line b=937.97 represents the rate of change of average annual cost of tuition at 4-year institutions (y) from 2003 to 2010(x). Here,average annual cost of tuition at 4-year institutions is dependent on school years .
Step-by-step explanation:
1) For the given situation we need to find linear regression equation Y=a+bX for the given situation.
Let x be the number of years starting with 2003 to 2010.
i.e. n=8
and y be the average annual cost of tuition at 4-year institutions from 2003 to 2010.
With reference to table we get
[tex]\sum x=36\\\sum y=150894\\\sum x^2=204\\\sum xy=718418[/tex]
By using above values find a and b for Y=a+bX, where b is the slope of regression line.
[tex]a=\frac{(\sum y)(\sum x^2)-(\sum x)(\sum xy)}{n(\sum x^2)-(\sum x)^2}=\frac{150894(204)-(36)718418}{8(204)-(36)^2}=\frac{30782376-25863048}{1632-1296}=\frac{4919328}{336}\\\\=14640.85[/tex]
and
[tex]b=\frac{n(\sum xy)-(\sum x)(\sum y)}{n(\sum x^2)-(\sum x)^2}=\frac{8(718418)-(36)150894}{8(204)-(36)^2}=\frac{5747344-5432184}{1632-1296}=\frac{315160}{336}\\\\=937.97[/tex]
∴ To find average cost of tuition at a 4-year institution starting in 2020.(as n becomes 18 for year 2020 if starts from 2003 ⇒X=18)
So, Y= 14640.85 + 937.97×18 = 31524.31
∴The best estimate for the average cost of tuition at a 4-year institution starting in 2020 = $31524.31
