For this exercise, round all regression parameters to three decimal places. The following table shows national health care costs, measured in billions of dollars. Date 1970 1980 1990 2000 2010 Costs in billions 75 253 714 1353 2570 (a) Plot the data. (Let t be years since 1970 and H the costs in billions of dollars.) b) Find an exponential function that approximates the data for health care costs. (Let t be years since 1970 and H the costs in billions of dollars.) H = 3120.372 × 0.916t H = 993.002 × 1.002t H = 94.414 × 1.091t
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.
For this exercise, round all regression parameters to three decimal places.
The following table shows national health care costs, measured in billions of dollars.
| Date | 1970 | 1980 | 1990 | 2000 | 2010 |
|---|---|---|---|---|---|
| Costs in billions |
75 | 253 | 714 | 1353 | 2570 |
(c) By what percent per year were national health care costs increasing during the period from 1970 through 2010? (Use the model found in part (b). Round your answer to one decimal place.)
%
(d) Use functional notation to express how much money was spent on health care in the year 2015. (Let t be years since 1970.)
Estimate that value. (Use the model found in part (b). Round your answer to the nearest integer.)
billion dollars
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