In: Statistics and Probability
4. Owner of a video rental chain want to predict the success of a
potential new store. The company’s researcher begins by gathering
information on number of rentals and average family income from
several of the chain’s present outlets.
Average family
Income
(RM1,000), x 65 43 29 47 52 50 46 29 31 43 49 64
Rentals, y 710 529 314 504 619 428 317 205 468 545 607 694
a. Construct a scatter plot for the data.
b. Comment on the relationship between age and price of cars base
on the above scatter plot of the
data
c. Calculate the correlation coefficient, R. Interpret the
calculated value of R.
d. Calculate the correlation of determination. Interpret the value
of R2.
e. Briefly comment on the relationship between the two variables
based on the correlation coefficient,
R.
f. Calculate the slope, b.
g. Calculate the intercept, a.
h. Write the regression equation.