Question

In: Statistics and Probability

Dose the scatter plot show a trend? If so, what is the trend? Dose the scatter...

Dose the scatter plot show a trend? If so, what is the trend?

Dose the scatter plot show a trend? If so, what is the trend?

Temperature Ice Cream Sales
62 100
75 550
72 400
86 720
99 810
92 800
81 710
93 790
88 710
65 150

Group of answer choices

Yes, the trend is inversely proportional.

Yes, the trend is directly proportional.

No, the trend is directly proportional.

No, the trend is directly proportional.

None of these

If there is a trend in the data, how many sales would you expect if the temperature outside is 90 degrees?

Temperature Ice Cream Sales
62 100
75 550
72 400
86 720
99 810
92 800
81 710
93 790
88 710
65 150

Group of answer choices

500

None of these

750

There is no trend.

250

Solutions

Expert Solution

For this problem we use statistical software Minitab.

Part One:

Steps for minitab to draw scatter plot:

1) open minitab -> entry the temperature data in column C1 -> entry the ice cream sales data in column C2

2) Click on " Graph " menu -> Then chose " Scatterplots " -> Then chose " Simple "

3) Now select " Ice cream sales " as a " Y variables " -> And select " Temperature " as a " X variables "

4) Click on " Ok " -> And you get the " Scatter Plot "

Copied From MInitab:-

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From this scatter plot we clearly see that " Temperature " & " Ice Cream Sales " is " Highly Positively Correlated " so we get a directly proportional trend.

Correct Answer :- Yes, the trend is directly proportional.

Part Two:

Since there is " Directly Proportional " trend is present, then X-variable " Temperature " is a good predictor of Y-variable " Ice Cream Sales ". Now we find the regression equation of " Y On X " i.e. " Ice Cream Sales On Temperature ".

Steps for minitab to established the regression equation:

1) Open minitab -> entry the temperature data in column C1 -> entry the ice cream sales data in column C2

2) Click on " STAT " menu -> Then chose " Regression " -> Then again chose " Regression " -> Then chose    " Fit Regression Model "

3) Now select " Ice cream sales " as " Resposes " -> And select " Temperature " as " Continuous predictors "

4) Click on " Ok " -> And you get the " Regression Equation "

Copied from MInitab"-

Regression Equation

Ice Cream Sales = -1086 + 20.42 Temperature

Now, if the " Temperature " outside is 90 degrees then the Number of " Ice Cream Sales " is given by,

Putting the value of " Temperature = 90 " in regression equation, and we get

Ice Cream Sales = -1086 + 20.42 90 = 751.8  

So, if the " Temperature " outside is 90 degrees then the Number of " Ice Cream Sales " is 751.8

Correct Answer :- None of these or 750(approximately)


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