STAT 200 Week 7 Homework Problems
10.1.2
Table #10.1.6 contains the value of the house and the amount of rental income in a year that the
house brings in ("Capital and rental," 2013).
Create a scatter plot and find a regression equation
between house value and rental income.
Then use the regression equation to find the rental
income a house worth $230,000 and for a house worth $400,000.
Which rental income that you
calculated do you think is closer to the true rental income?
Why?
Table #10.1.6: Data of House Value versus Rental
Value
Rental
Value
Rental
Value
Rental
Value
Rental
81000
6656
77000
4576
75000
7280
67500
6864
95000
7904
94000
8736
90000
6240
85000
7072
121000
12064
115000
7904
110000
7072
104000
7904
135000
8320
130000
9776
126000
6240
125000
7904
145000
8320
140000
9568
140000
9152
135000
7488
165000
13312
165000
8528
155000
7488
148000
8320
178000
11856
174000
10400
170000
9568
170000
12688
200000
12272
200000
10608
194000
11232
190000
8320
214000
8528
208000
10400
200000
10400
200000
8320
240000
10192
240000
12064
240000
11648
225000
12480
289000
11648
270000
12896
262000
10192
244500
11232
325000
12480
310000
12480
303000
12272
300000
12480
Sample Size: 48

Value
Regression equation: Rental = 5363.865+0.024*Value
(y=5363.865+0.024x)
House valued at $230000: y=5363.865+0.024(230000)= 10883.865
House valued at $400000: y= 5363.865+0.024(230000)= 14963.865
Rental income for a house valued at $230000 is closer to the true rental income because these values
are within the original values (interpolating).
10.1.4
The World Bank collected data on the percentage of GDP that a country spends on health
expenditures ("Health expenditure," 2013) and also the percentage of women receiving prenatal
care
("Pregnant woman receiving," 2013).
The data for the countries where this information are
available for the year 2011 is in table #10.1.8.
Create a scatter plot of the data and find a
regression equation between percentage spent on health expenditure and the percentage of
women receiving prenatal care.
Then use the regression equation to find the percent of women
receiving prenatal care for a country that spends 5.0% of GDP on health expenditure and for a
country that spends 12.0% of GDP.
Which prenatal care percentage that you calculated do you
think is closer to the true percentage?
Why?
Table #10.1.8: Data of Health Expenditure versus Prenatal Care
Rental

Health
Expenditur
e (% of
GDP)
Prenatal
Care (%)
9.6
47.9
3.7
54.6
5.2
93.7
5.2
84.7
10.0
100.0
4.7
42.5
4.8
96.4
6.0
77.1
5.4
58.3
4.8
95.4
4.1
78.0
6.0
93.3
9.5
93.3
6.8
93.7
6.1
89.8
Regression equation: Prenatal Care= 69.7+1.66*Health Expenditure
(y=69.7+1.66x)

Spends 5% on health expenditure: y=69.7+1.66(5)=78%

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- Statistics, Regression Analysis, Correlation and dependence, Pearson product-moment correlation coefficient, rental income