In: Statistics and Probability
For Exercise 1 through 7, do a complete regression analysis by performing the following steps.
a.Draw the scatter plot.
b.Compute the value of the correlation coefficient.
c.Test the significance of the correlation coefficient at α = 0.01, using Table I or use the P-value method.
d.Determine the regression line equation if r is significant.
e.Plot the regression line on the scatter plot, if appropriate.
f.Predict y′ for a specific value of x, if appropriate.
Sections 10–1 and 10–2
1.Customer Satisfaction and Purchases At a large department store customers were asked to rate the service and the materials purchased on a scale from 1 to 10, with 10 being the highest rating. Then the amount that they spent was recorded. Is there evidence of a relationship between the rating and the amount that they spent? Please do by hand and show work
Rating x |
6 |
8 |
2 |
9 |
1 |
5 |
Amount spent y |
$90 |
$83 |
$42 |
$110 |
$27 |
$31 |
Answer: 1.H_{0}: ρ = 0; H_{1}: ρ ≠ 0; r = 0.864; C.V. = ±0.917; d.f. = 4; do not reject. There is not a significant linear relationship between the rating and the amount that they spent. No regression analysis should be done. P = 0.0263