The following data shows the retail price for 12 randomly selected laptop computers along

with their corresponding processor speeds.

computers speed price $

1 2 2,689

2 1.6 1,229

3 1.6 1,419

4 1.8 2,589

5 2 2,849

6 1.2 1,349

7 2 2,929

8 1.6 1,849

9 2 2,819

10 1.6 2,669

11 1 1,249

12 1.4 1,159

a. Develop a linear equation that can be used to describe how the price depends on the

processor speed.

b. Based on your regression equation, is there one machine that seems particularly over- or

underpriced?

c. Compute the correlation coefficient between the two variables. At the .05 significance

level conduct a test of hypothesis to determine if the population correlation could be

greater than zero.

d. Draw a box plot reflecting how the price depends on the processor speed.

with their corresponding processor speeds.

computers speed price $

1 2 2,689

2 1.6 1,229

3 1.6 1,419

4 1.8 2,589

5 2 2,849

6 1.2 1,349

7 2 2,929

8 1.6 1,849

9 2 2,819

10 1.6 2,669

11 1 1,249

12 1.4 1,159

a. Develop a linear equation that can be used to describe how the price depends on the

processor speed.

b. Based on your regression equation, is there one machine that seems particularly over- or

underpriced?

c. Compute the correlation coefficient between the two variables. At the .05 significance

level conduct a test of hypothesis to determine if the population correlation could be

greater than zero.

d. Draw a box plot reflecting how the price depends on the processor speed.

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