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Q1) For each of the fifty states if you look at state average income and percentage of people in that state who are foreign- born immigrants, you will see a positive correlation. Does this mean immigrants tend to earn more that n other people? Or does it mean immigrants improve a state's economy? If not what could describe the correlation?
Q2) Production costs for large number of previous orders of varying sizes for product are in file production.xls. Analyst computes production cost per unit in each order and averages these to get $50. Using this he provides a cost estimate of $21,000 for new order for 500 units. Is this sensible cost estimate? Describe why or why not looking at data in the file, can you give a better cost estimate?
Order size units
Cost($)
983
51275
798
40808
527
38195
1049
49989
780
37299
831
55707
857
13168
1316
58135
1737
76111
1511
65020
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