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Unformatted text preview: 194 CHAPTER 12. LINEAR REGRESSION AND CORRELATION Table 12.8 Exercise 12.9 (Solution on p. 204.) a. Using size as the independent variable and cost as the dependent variable, make a scatter plot. b. Does it appear from inspection that there is a relationship between the variables? Why or why not? c. Calculate the least squares line. Put the equation in the form of: ^ y = a + bx d. Find the correlation coefficient. Is it significant? e. If the laundry detergent were sold in a 40 ounce size, find the estimated cost. f. If the laundry detergent were sold in a 90 ounce size, find the estimated cost. g. Use the two points in (e) and (f) to plot the least squares line on your graph from (a). h. Does it appear that a line is the best way to fit the data? Why or why not? i. Are there any outliers in the above data? j. Is the least squares line valid for predicting what a 300 ounce size of the laundry detergent would cost? Why or why not? k. What is the slope of the least squares (best-fit) line? Interpret the slope. Exercise 12.10 a. Complete the above table for the cost per ounce of the different sizes. b. Using Size as the independent variable and Cost per ounce as the dependent variable, make a scatter plot of the data. c. Does it appear from inspection that there is a relationship between the variables? Why or why not?...
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