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GOODNESS OF FIT
Exercise 1
(a) r=sqrt(0.6595)=0.81 Strong positive correlation. As the number of cheques increases, the
cost increases
(b) 66% of the variation in bank charges can be explained by the different number of cheques
processed.
(c) Average bank charges are £18.68 fixed charge plus £0.60 per cheque.
(d) £138 (e) £257 (f) Knotty Knitwear because it involves interpolation.
(g) The one with the largest positive residual. (h) The one with the largest negative residual.
Exercise 2
Mileage Price Fitted Residual Residual2
19 3250 2879.3 370.7 137418.49
41 2650 2300.7 349.3 122010.49
33 2100 2511.1 -411.1 169003.21
59 1650 1827.3 -177.3 31435.29
96 1250 854.2 395.8 156657.64
67 1100 1616.9 -516.9 267185.61
Mean 2000 SSRes 883710.73
SSTot 3490000 n-2 4
s2 220927.7
Correlation coefficient, r =-0.864 => strong inverse correlation between mileage and price.
Coefficient of Determination, r2 =75% => 75% of variation in prices can be explained by the
mileage.
Standard error about the line, s = 470 => The predicted price is roughly £470 away from the actual
price on average
Exercise 3
(a) Correlation is not causal. The size of the town is the main factor here.
(b) The relationship is probably non-linear.
(c) There are only a few points, so the correlation has probably come about by chance.
(d) Both variables have increased gradually over the past 50 years, not necessarily because they
are connected in any way. Or possible 3rd factor; increased opportunities for women.
PREDICTION
1. r = ±√0.855 = 0.925
Strong direct correlation between bacteria per unit volume and time.
2. At the start of the experiment the bacteria density is predicted to be -69.9, which is
clearly impossible and casts doubt on the validity of the model.
Every hour the number of bacteria increases by 88 per unit volume on average.
4. It has a large positive residual, so the number of bacteria was far greater than expected at
that time.
8. If the growth is exponential then taking logs should reduce it to a linear form
14. Number of bacteria per unit volume is multiplied by a factor of 1.70 every hour on
average, i.e. it increases by 70% per hour on average.
TESTING MEANS