Question: Refer to Exercise 11 86 Calculate a new variable x

Refer to Exercise 11.86. Calculate a new variable: x = 1/ density.
a. What is the interpretation of the new variable? In particular, if the new variable equals 0.50, what does that mean about the particular zip code area?
b. Plot sales against the new variable. Does a straight- line prediction look reasonable here?
c. Obtain the correlation of sales and the new variable. Compare its magnitude to the correlation obtained in Exercise 11.86 between sales and density. What explains the difference?
In exercise

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  • CreatedNovember 21, 2015
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