144 Line A: y = 3 - 06x Line B:y = 4 x[o22 5 6 y|420 21 1442 Fora data set consisting of two data points ‘a Identify the regression ine 'b, What is the sum of squared errors forthe regression line? Ex- plain your answer 1448 Refer to Exercise 14.42, For each of the following sets of dala points, determine the regression equation both without and ‘ith the use of Formula 14.1 on page 637 x[24 » xflios yfa 3 xfs 3 In each of Exercises 14.44-14.49, 4. find the regression equation for the data points graph the regression equation and the data points. 1444 1445 2 5 1446 12 43 1447 2 14.48. The data points in Exercise 14.40 14.49 ‘The data points in Exercise 14.41 In each of Exercises 1450-1455, 4. find the regression equation for the data points. . graph the regression equation and the data points. «describe the apparent relationship between the two variables under consideration interpret the slope of the regression line, identify the predictor and response variables. identify outliers and potential influential observations predict the values of the response variable for the specified values of the predictor variable, and interpret your results 1450 Tax Efficiency. Tax efficiency is a measure, ranging rom 0 to 100, of how much tax due to capital gains stock of a 442 The Regression Equation 64S ‘mutual funds investors pay on their investments each year; the higher the tax efficiency, he lower isthe tax, Inthe article “At the Mercy of the Manager” (Financial Planning, Vel. 30(3), pp. 54-6), C, Isrelsen examined the relationship between in vestments in mutual fund portfolios and their associated tax ef- ficiencies. The following table shows percentage of investments in energy securities (x) and tax efficiency () for 10 mvutual fund portfolios For part (g), predict the tax efliciency of a mutual fund portfolio with 5.0% ofits investments in energy securities and fone with 7.4% of its investments in energy securities x| 31 32 37 43 40 55 67 74 74 106 y [981 947 920 898 875 $50 $20 778 721 525 USL Corvette Prices. The Kelley Blue Book provides infor- ‘mation on wholesale and retail prices of cars. Following are age and price data for 10 randomly selected Corvettes between 1 and 6 years old. Here, x denotes age, in years, and y denotes price, in hundreds of dollars. For part (g), predict the prices of @2-year-old Corvette and a 3-yearold Corvette 66 6 225 4 5 1 4 y| 290 280 295 425 384 315 355 328 425 325 14.52 Custom Homes. Hanna Properties specializes in custom- home resales in the Equestrian Estates, an exclusive subdivision in Phoenix, Arizona, A random sample of nine custom homes currently listed for sale provided the following information on size and price. Here, x denotes size, in hundreds of square feet, rounded to the nearest hundred, and y denotes price, in thousands of dollars, rounded to the nearest thousand. For part (g), predict the price of a 2600-sq. fk, home in the Equestrian Estates, x| 2% 27 33 29 29 34 30 40 y| S10 555 575 577 606 661 738 $04 496 14.53 Plant Emissions. Plants emit gases that trigger the ripen ing of frat, attract pollinators, and cue other physiological re- sponses. N. Agelopolous et al. examined factors that affect the emission of volatile compounds by the potato plant Solanum tuberosom and published their Gindings in the paper “Factors Asfecting Volatile Emissions of Intact Potato Plants, Solanum tuberosum: Variability of Quantities and Stability of Ratios” Gournal of Chemical Ecology, Vol. 26, No. 2, pp. 497-SL1). The volatile compounds analyzed were hydrocarbons used by other plants and animals. Following are data on plant weight (x), in ‘rams, and quantity of volatile compounds emitted (3), in hun- tdreds of nanograms, for 11 potato plants. For part (g), predict the quantity of volatile compounds emitted by a potato plant that weighs 75 grams 57 85 57 65 52 67 62 80 77 53 68 y|80 220 105 225 120 115 75 130 165 210 120646 CHAPTER 14 Descriptive Methods in Regression and Correlation 1454 Crown-Rump Length, In the article “The Human Vomeronasal Organ. Part I: Prenatal Development” (Journal of Anatomy, Vol. 197, Issue 3, pp. 421-436), T. Smith and K, Bhatnagar examined the controversial issue of the human vomeronasal organ, regarding its structure, function, and identity. The following table shows the age of fetuses (x), in weeks, and length of crowen-rump (), in millimeters. For part (g), predict the crown-rump length of « 19-woek-old fetus. to 10 1 13 Is 19 19 23 25 28 66 65 108 106 161 166 177 28 235 280 1455 Study Time and Score. An instructor at Arizona State University asked a random sample of eight students to record their study times in a beginning calculus course. She then made ‘table for total hours studied (1) over 2 weeks and test score (y) atthe end ofthe 2 weeks. Here ar the results. Fr pat (g), predict the score of a student who studies for 15 hours. x[ is 2 2 8 6 4 2 y|92 si 4 74 85 80 84 40 14.56 For which ofthe following sets of data points can you rea sonably determine a regression ine? Explain your answer, 14557 For which ofthe following set of data points can you rea- sonably determine a regression ine? Explain your answer. 1458 Tax Efficiency. In Exercise 14.50, you determined a re- {gression equation that relates the variables percentage of invest- ‘ments in energy securities and tax efficiency for mutual fund portfolio. a, Should that regression equation be used to predict the tx efl- ciency of a mutual fund portfolio with 6.4% of its investments im energy securities? with 15% of ite investments in eneray securities? Explain your answers, b, For which percentages of investments in energy securities is use of the regression equation to predict tax elficiency reasonable? 1459 Corvette Prices. In Exercise 1451, you determined a regression equation that can be used to predict the price of @ Corvette, given its age, 1, Should that regression equation be used to predict the price of 84-year-old Corvette? a 10-year-old Corvette? Explain your . For which ages is use of the regression equation to predict price reasonable? 14.60 Palm Beach Fiasco. The 2000 U.S. presidential election brought great controversy to the election process. Many voters in Palms Beach, Florida, claimed that they were confused by the ballot format and may have accidentally voted for Pat Buchanan when they intended to vote for Al Gore. Professors G.D. Adams ‘of Camegic Melion University and C. Fastnow of Chatham Col- lege compiled and analyzed data on election votes in Florida, bby county, for both 1996 and 2000, What conclusions would ‘you draw from the following scatterplots constructed by the re- searchers? Explain your answers Republican Presidential Primary Election Results ‘or Florida by Counsy (1986) 14,000 ——! § 1,000 g Palm Beach Z count 3 e000 y 3 - F000 > 2 - > sop{ #8 * 2000 ° 0 20,000” 40,000 60,000 Votes for bole Presidential Election Results ‘or Florida by County (2000) 4000 3500 + Fan Bea g 3000 County soo © 2000 3 1500 1000 soo ©" 100,000 " 200,000 " 300,000 Votes for Bush ‘eriienin titre oman, cata Cage 1461 Study Time and Score. The negative relation between study time and test score found in Exercise 14.55 has been dis- covered by many investigators. Provide a possible explanation for it,