In: Statistics and Probability
For questions #13-20, refer to the following: A linear regression analysis is used to find the relationship between the age (x) of a car and the value in 1,000's (y) of that car. A random sample of some Ford Taurus model cars are being used with the results below. age (x): 2 5 9 4 7 6 value in 1000's (y): 24.5 16.7 7.3 22.3 5.6 14.5
What is the value for SSxy?
What is the value for SSxx?
What is the value for SSyy?
What is the value of the correlation coefficient, r?
What % of the y-variable is directly related to the x-variable?
What is the equation of the regression line?
What is the value of a 4 year old Ford Taurus based on this linear regression analysis?
What is the predicted value of a 7 year old Ford Taurus based on this linear regression model?
Based on the above calculation:
13. The value for SSxy is -86.35
14. The value for SSxx is 29.5
15. The value for SSyy is 294.195
16.
The correlation coefficient r is calculated as follows:
The value of the correlation coefficient, r is -0.9269
17.
The coefficient of determination r2 = -0.9269^2 = 0.8591
Since coefficient of determination is 0.8592, 85.91 % of the y-variable is directly related to the x-variable.
18.
19.
Substituting x = 4 in regression equation, we get
y (in 1000's) = 31.2492 - 2.9271*4
y (in 1000's) = 19.5408
The value of a 4 year old Ford Taurus based on this linear regression analysis is 19540.8
20.
Substituting x = 7 in regression equation, we get
y (in 1000's) = 31.2492 - 2.9271*7
y (in 1000's) = 10.7595
The value of a 4 year old Ford Taurus based on this linear regression analysis is 10759.5