The owner of a second-hand car dealership wants to study the relationship a car and its selling price. Listed below is a random sample of 12 used cars so during the last year. Age (years) Price (thousand $) 8.1| 6 3.6 4 5 7 11| 12 8 7 8 11 10 7.6 8 10 a. Draw a scatter diagram and comment the relation between the age selling price.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
![Problem 5
Suppose that we are working with some doctors on heart attack patients. The dependent
variable is whether the patient has had a second heart attack within 1 year (yes=1). We have
two independent variables, one is age of the patient and the other is a score on anxiety scale (a
higher score means more anxious). After applying logistic regression model, we have the
following output:
Deviance Residuals:
10 Median
Min
30
Маx
1.446
-1.064
0.000
0.000
0.000
Coefficients:
Estimate Std. Error z value Pr (>|z|)
(Intercept)
-471.441 223186.509
-0.002
0.998
Age
Anxiety
6.394
3057.349
0.002
0.998
1.347
611.470
0.002
0.998
(Dispersion parameter for binomial family taken to be 1)
Null deviance: 27.7259 on 19 degrees of freedom
Residual deviance: 3.7087 on 17 degrees of freedom
AIC: 9.7087
Number of Fisher Scoring iterations: 23
a. Determine the estimated logistic regression equation.
b. Calculate the odds ratio and interpret.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe17fb59c-84e2-4097-95f3-98832f024a61%2F4591f002-0c10-4b9d-a9e2-8f04c7de1fa4%2Fiu2xt0n_processed.png&w=3840&q=75)
![Problem 1
The owner of a second-hand car dealership wants to study the relationship between the age of
a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership
during the last year.
Age (years)
Price (thousand S) 8.1
7 11 12 8 7 8 11 | 10 | 12
6 3.6 4
6 6
6 8.6 8
9
5
10 7.6 8
8
a. Draw a scatter diagram and comment the relation between the age of the car and its
selling price.
b. Determine the Pearson correlation coefficient and the coefficient of determination and
interpret it.
Problem 2
At a business case competition, two judges were tasked with scoring (out of 1000) the case
reports submitted by 12 teams. Using the following data, we would like to examine the
association between the scores of the two judges.
Judge 1 650 760 740 700 590
Judge 2 900 720 690 850 920
690 900
920 1000 690 700 760
620| 700
500 610 700
800 890
a. Compute the Spearman rank correlation between the scores of the two judges.
b. Comment on the association between the scores of the two judges.
Problem 3
An electric company is studying the relationship between the energy consumption (in thousand
kilowatt-hours) and the number of rooms in a private single-family residence. A random
sample of 10 homes yielded the following.
Number of Rooms
Energy Consumption (thousand kWh) 9 7 10
12 9 14 6 10 8 | 10 10 5
5 8 6 8 10 4
7
7
a. Determine the regression equation of energy consumption on the number of rooms.
b. Interpret the model.
c. What is the predicted energy consumption, in thousand kWh, for a six-room house.
d. Comment on the goodness of fit of the model.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe17fb59c-84e2-4097-95f3-98832f024a61%2F4591f002-0c10-4b9d-a9e2-8f04c7de1fa4%2Fqicm2e_processed.png&w=3840&q=75)
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