Question

The following table tabulates the average airfare charged by particular airlines in Bengaluru-Mumbai segment for last six months and the corresponding number of passengers in that month.

a)Calculate the ‘Correlation Coefficient’ (r) of these two variables from the given data. Also comment and conclude about the relationship within these two variables from the value of ‘r’.

	May	june	july	aug	Sept	Oct
Average Airfare	5150	4830	5870	5900	5300	5250
No of passengers	14900	15600	14000	14200	14000	14300

b)

Assuming average airfare as dependent variable, fit a suitable regression line and forecast the average airfare for November and December assuming no of passengers will grow from October at a rate of 10% per month in November and December.

Answer 1

a)‘Correlation Coefficient’ (r) of these two variables from the given data -0.7738

there is negatively correlated i.e. low relation between these two variables

b)Assuming average airfare as dependent variable, fit a suitable regression line

y=a+b*x

y=average airfare

x=no. of passengers

y(average airfare)=12865.33-0.516* No.of passengers

forecast the average airfare for November and December assuming no of passengers will grow from October at a rate of 10% per month in November and December.

No. of passenger november and december is 14443 and 14588

forecast the average airfare for November is

y(average airfare)=12865.33-0.516* No.of passengers

y(average airfare)=12865.33-0.516* 14443

y(average airfare)=

5412.745

=5413

forecast the average airfare for November is

y(average airfare)=12865.33-0.516* No.of passengers

y(average airfare)=12865.33-0.516* 14

y(average airfare)=

5412.745

=5413

forecast the average airfare for December is

y(average airfare)=12865.33-0.516* No.of passengers

y(average airfare)=12865.33-0.516* 14443

y(average airfare)=5337.92

=5338

ssuming average airfare as dependent variable, fit a suitable regression line