The maximum discount value of the Entertainment® card for the “Fine Dining” section, Edition ten, for various pages is given in the table
| Page number | Maximum value ($) |
| 4 | 16 |
| 14 | 19 |
| 25 | 15 |
| 32 | 17 |
| 43 | 19 |
| 57 | 15 |
| 72 | 16 |
| 85 | 15 |
| 90 | 17 |
- Decide which variable should be the independent variable and which should be the dependent variable.
- Draw a scatter plot of the ordered pairs.
- Calculate the least-squares line. Put the equation in the form of: ŷ = a + bx
- Find the correlation coefficient. Is it significant?
- Find the estimated maximum values for the restaurants on page ten and on page 70.
- Does it appear that the restaurants giving the maximum value are placed in the beginning of the “Fine Dining” section? How did you arrive at your answer?
- Suppose that there were 200 pages of restaurants. What do you estimate to be the maximum value for a restaurant listed on page 200?
- Is the least squares line valid for page 200? Why or why not?
- What is the slope of the least-squares (best-fit) line? Interpret the slope.
OpenStax Introductory Statistics 2e, 12.5 Prediction, exercise 25