Reference no: EM132394086

Question

Assume you have noted the following prices for paperback books and the number of pages that each book contains.

Book Pages (x variable) Price (y variable)

A 510 $7. 50

B 624 $8.25

C 557 $7.75

D 650 $8.50

E 532 $7.65

F 600 $8.00

G 472 $6.75

1. Create a scatter diagram with a regression line. Include the coefficient of determination on the graph. Hint: You can create the graph by putting the table into Excel, using the Insert function and selecting scatter diagram. Once the scatter diagram is in Excel, a green plus sign appears near the upper right corner. Click on it. The last option is trendline. Click that option. Then use the black triangle in that box to open more options which allow you to place the r squared value and the equation on the graph. Also remember from Week 1 all the things that a good graph needs...
2. Compute the Pearson's Product Moment Correlation Coefficient from your coefficient of determination. Does it indicate a strong positive relationship, a strong negative relationship, a weak positive relationship, a weak negative relationship, or no relationship?
3.  According to the trendline / regression line, if there were 592 pages, how much should the book cost? Show your work.
4. According to the trendline/regression line, if there were 1976 pages, how much should the book cost? Show your work.
5. According to the trendline/regression line, if the book cost $17.50, how many pages should it have had? Show your work.
6. Given our discussion about the 130-inch tall person, which answer (#3 or #4) do you believe is more likely to be reliable? Why?
7. Use the steps in the video lecture of the week to conduct a full hypothesis test with Excel doing the calculations to see if x and y are related. Use α = 0.10 and the p-value method. Upload the Excel sheet in addition to the MS Word document. Remember from Week 6 that hypothesis testing is a series of steps. All steps are needed.