Question

9. The data shows the number of car rental companies which can be utilized to transport construction equipment to the construction sites. a) Compute the correlation coefficient. b) Test the claim that there is a significant relationship of the correlation coefficient using α-, 001, c) Find the equation of the regression line for the data, and graph the line on the scatter plot. d) Use the equation of the regression line to predict the income of a car rental agency that has 300,000 automobiles. Company Cars (in ten thousands) Revenue (in billions) 63.0 29.0 20.8 19.1 13.4 8.5 $7.0 3.9 2.1 2.8 1.4 1.5

Answer 1

9)

a)

b)

from above as test statistic falls above critical value therefore we reject null hypothesis and conclude that there is a signifcant relationship of the correlation coefficient

c)

Sp 1916.8533 Say 203.4267 slope- 0.1061 intercept- y-B1た 0.3963 hence line equation: 0.396 0.106 x

d)

predicted value =0.396+0.106*30=3.576 billions