Numbeo.com lists the cost of living (COL) for 576 cities around the world. It reports the typical cost of a number of staples. Here are a scatterplot and regression relating the cost of a cappuccino to the cost of a third of a liter of water:

a) Using this information, describe the association between the costs of a cappuccino and a third of a liter of water.
b) The correlation is 0.597. Find and interpret the value of R².

c) The regression equation predicting the cost of a cappuccino from the cost of a liter of water is

In Christchurch, New Zealand, a third of a liter of water costs $2, and a cappuccino is $3.37. Calculate and interpret the residual for Christchurch.

Transcribed Image Text:

Cappuccino (regular) 5.00 + 3.75 2.50 1.25 + 990 ago 0000 0 googl O d $8 080 8 0.75 O 1.50 2.25 Water (0.33 liter bottle) 3.00