The owner of Bertha’s Restaurant is interested in whether an association exists between the amount spent on food and the amount spent on drinks for the restaurant’s customers. She decides to measure each variable for every customer in the next month. Each day she also summarizes the mean amount spent on food and the mean amount spent on drinks. Which correlation between amounts spent on food and drink do you think would be higher, the one computed for the 2500 customers in the next month, or the one computed using the means for the 30 days of the month? Why? Sketch a sample scatter-plot showing what you expect for each case as part of your answer.
Answer to relevant QuestionsFor which student body do you think the correlation between high school GPA and college GPA would be higher: Yale University or the University of Connecticut? Explain why. For the House Selling Prices FL data file on the text CD, MINITAB results of a regression analysis are shown for 100 homes relating y = selling price (in dollars) to x = the size of the house (in square feet). a. Show all ...Suppose the regression line μy = -10,000 + 1000x models the relationship for the population of working adults in Canada between x = age and the mean of y = annual income (in Canadian dollars). The conditional distribution ...For a random sample of children from a school district in South Carolina, a regression analysis is conducted of y = amount spent on clothes in the past year (dollars) and x = year in school. MINITAB reports the tabulated ...Report the ANOVA table for the previous exercise. a. Show how the Total SS breaks into two parts, and explain what each part represents. b. Find the estimated residual standard deviation of y. Interpret it. c. Find the ...
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