Question

The paired values represent the weights (carats) and prices (dollars) of randomly selected diamonds.

Weight	0.2	0.4	0.5	0.6	0.9	0.7	0.8
Price	610	1354	1343	1752	5605	2277	2600

39. Compute the least squares regression line for the predicted price for a given weight.

40. Calculate the correlation coefficient between the two variables.

Please show work using excel functions!

Answer 1

We can use here Excel for regression equation

Step 1) Enter data in Excel .

Step 2) Data >>Data analysis >>Regression >>Select y (Price) and x (Weight) values separately >>Ok

Question 39)

Regression equation is,

i.e. Price= 5743.77*Weight-1144.07

Question 40) In regression output = Correlation coefficient = Multiple R= 0.849

or

We can directly calculate correlation coefficient by using Excel.

Step 1)  Enter data in Excel.

Step 2 )  Then use =CORREL command and select two separate column data  >> ok