An insurance company is interested in the relationship between the number of licensed vehicles in a state and the number of accidents per year in that state. It collects a random sample of 10 counties within the state:
X, Number of Licensed Vehicles (in thousands) | Y, Number of Accidents (in hundreds) |
4 | 1 |
10 | 4 |
15 | 5 |
12 | 4 |
8 | 3 |
16 | 4 |
5 | 2 |
7 | 1 |
9 | 4 |
10 | 2 |
(a) Plot the points on linear graph paper.
(b) Find the equation that relates X and Y.
(c) Find the correlation coefficient.
(d) Estimate from the derived equation the number of accidents in the largest county, with 35 000 vehicles.
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