Refer to Exercise 3.19.

Suppose we assume that the relationship between x and y is linear.

a. Find the correlation coefficient, r. What does this value tell you about the strength and direction of the relationship between size and price?

b. What is the equation of the regression line used to predict the price of the TV based on the size of the screen?

c. The Sony Corporation is introducing a new 37" LCD TV. What would you predict its price to be?

d. Would it be reasonable to try to predict the price of a 45" LCD TV? Explain.

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Brand Price Size JVC LT-40FH96 Sony Bravia KDL-V32XBR1 Sony Bravia KDL-V4OXBR1 Toshiba 37HLX95 Sharp Aquos LC-32DA5U Sony Bravia KLV-S32A10 Panasonic Viera TC-32LX50 JVC LT-37X776 40 32" $2900 1800 40 37 2600 3000 1300 32" 32 32" 37" 1500 1350 2000 LG 37LP1D Samsung LN-R328W 2200 37" 1200 32