Energy drinks come in different-sized packages: pouches, small bottles, large bottles, twin-packs, 6-packs, and so on. How is the price related to the amount of beverage? Data collected on a variety of packages revealed a mean size of 140.17 ounces with a standard deviation of 78.23 ounces. The packages had an average price of $3.66 with a standard deviation of $1.50, and the correlation between size and price was r= 0.91. A scatterplot of these data suggested that the assumptions needed for regression were reasonable. a) Interpret the value of r in context. b) Compute the slope of the regression line for predicting the price of an energy drink. Include the proper units in your answer. c) Write the equation for the least-squares regression line for these data. d) If the price was in Euros instead of US dollars, what would be the correlation between size and price? Explain. e) For this model the standard deviation of the residuals was s = 0.26. Explain what that means in context.
Energy drinks come in different-sized packages: pouches, small bottles, large bottles, twin-packs, 6-packs, and so on. How is the price related to the amount of beverage? Data collected on a variety of packages revealed a mean size of 140.17 ounces with a standard deviation of 78.23 ounces. The packages had an average price of $3.66 with a standard deviation of $1.50, and the
a) Interpret the value of r in context.
b) Compute the slope of the regression line for predicting the price of an energy drink. Include the proper units in your answer.
c) Write the equation for the least-squares regression line for these data.
d) If the price was in Euros instead of US dollars, what would be the correlation between size and price? Explain.
e) For this model the standard deviation of the residuals was s = 0.26. Explain what that means in context.
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