5. An article in Technometrics by S. C. Narula and J. F. Wellington [“Prediction, Linear Regression, and a Minimum Sum of Relative Errors” (1977, Vol. 19)] presents data on the selling price and annual taxes for 24 houses. The data are shown in the table. Do the following: a) Construct a scatter plot of sales price versus taxes paid. b) Comment on the widely held belief that price is related to taxes paid.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
5. An article in Technometrics by S. C. Narula and J. F. Wellington [“Prediction, Linear Regression, and a Minimum Sum of Relative Errors” (1977, Vol. 19)] presents data on the selling price and annual taxes for 24 houses. The data are shown in the table.
Do the following:
a) Construct a
b) Comment on the widely held belief that price is related to taxes paid.
6. An article in Technometrics (1977, Vol. 19, p. 425) presented the following data on the motor fuel octane
ratings of several blends of gasoline:
Do the following:
a) Construct a stem-and-leaf display for these data.
b) Calculate the
c) Construct a frequency distribution for the motor fuel octane data. Use 8 as the no. of
classes. Show all the elements:
• Class Intervals, Class Boundaries, Class Midpoint
• Frequency, Relative Frequency, Cumulative Frequency, Cumulative Rel.
Frequency
d) Construct a frequency histogram.
e) Construct an ogive
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