1. What is the linear relationship between Fahrenheit and Celsius? Since the relationship is linear, you only need the following two points to calculate the relationship. Use the slope-intercept form for the equation of a straight-line (y = mx + b), where m is the slope coefficient and b is the vertical intercept. The equation for the slope is Δy/Δx, where Δy = y1 - y0 and Δx = x1 - x0. Let y be the temperature in Fahrenheit and x be the temperature in Celsius. To calculate the vertical intercept, use the fact that the vertical intercept is the value of y when x = 0.
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Fahrenheit
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Celsius
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Freezing point of water
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32
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0
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Boiling point of water
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212
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100
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2. Now use the data in the Excel file entitled "Fahrenheit Celsius regression illustration.xls" to estimate a regression, where Fahrenheit is the dependent or Y variable and Celsius is the independent or X variable.
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Use a t-ratio to test the following hypotheses:
The estimated slope coefficient is equal to the slope calculated in 1 above.
The estimated "constant" is equal to the vertical intercept calculated in 1 above.
Attachment:- Fahrenheit Celsius regression illustration (1).xlsx