<< Chapter < Page Chapter >> Page >

What would you predict the sales to be on day 60?

$250,120

What would you predict the sales to be on day 90?


Use the following information to answer the next three exercises . A landscaping company is hired to mow the grass for several large properties. The total area of the properties combined is 1,345 acres. The rate at which one person can mow is as follows:

ŷ = 1350 – 1.2 x where x is the number of hours and ŷ represents the number of acres left to mow.

How many acres will be left to mow after 20 hours of work?

1,326 acres

How many acres will be left to mow after 100 hours of work?

How many hours will it take to mow all of the lawns? (When is ŷ = 0?)

1,125 hours, or when x = 1,125

[link] contains real data for the first two decades of AIDS reporting.

Adults and adolescents only, united states
Year # AIDS cases diagnosed # AIDS deaths
Pre-1981 91 29
1981 319 121
1982 1,170 453
1983 3,076 1,482
1984 6,240 3,466
1985 11,776 6,878
1986 19,032 11,987
1987 28,564 16,162
1988 35,447 20,868
1989 42,674 27,591
1990 48,634 31,335
1991 59,660 36,560
1992 78,530 41,055
1993 78,834 44,730
1994 71,874 49,095
1995 68,505 49,456
1996 59,347 38,510
1997 47,149 20,736
1998 38,393 19,005
1999 25,174 18,454
2000 25,522 17,347
2001 25,643 17,402
2002 26,464 16,371
Total 802,118 489,093

Graph “year” versus “# AIDS cases diagnosed” (plot the scatter plot). Do not include pre-1981 data.

Perform linear regression. What is the linear equation? Round to the nearest whole number.

Check student’s solution.

Write the equations:

  1. Linear equation: __________
  2. a = ________
  3. b = ________
  4. r = ________
  5. n = ________

Solve.

  1. When x = 1985, ŷ = _____
  2. When x = 1990, ŷ =_____
  3. When x = 1970, ŷ =______ Why doesn’t this answer make sense?

  1. When x = 1985, ŷ = 25,52
  2. When x = 1990, ŷ = 34,275
  3. When x = 1970, ŷ = –725 Why doesn’t this answer make sense? The range of x values was 1981 to 2002; the year 1970 is not in this range. The regression equation does not apply, because predicting for the year 1970 is extrapolation, which requires a different process. Also, a negative number does not make sense in this context, where we are predicting AIDS cases diagnosed.

Does the line seem to fit the data? Why or why not?

What does the correlation imply about the relationship between time (years) and the number of diagnosed AIDS cases reported in the U.S.?

Also, the correlation r = 0.4526. If r is compared to the value in the 95% Critical Values of the Sample Correlation Coefficient Table, because r >0.423, r is significant, and you would think that the line could be used for prediction. But the scatter plot indicates otherwise.

Plot the two given points on the following graph. Then, connect the two points to form the regression line.

Blank graph with horizontal and vertical axes.

Obtain the graph on your calculator or computer.

Write the equation: ŷ = ____________

y ^ = 3,448,225 + 1750 x

Hand draw a smooth curve on the graph that shows the flow of the data.

Does the line seem to fit the data? Why or why not?

There was an increase in AIDS cases diagnosed until 1993. From 1993 through 2002, the number of AIDS cases diagnosed declined each year. It is not appropriate to use a linear regression line to fit to the data.

Do you think a linear fit is best? Why or why not?

What does the correlation imply about the relationship between time (years) and the number of diagnosed AIDS cases reported in the U.S.?

Since there is no linear association between year and # of AIDS cases diagnosed, it is not appropriate to calculate a linear correlation coefficient. When there is a linear association and it is appropriate to calculate a correlation, we cannot say that one variable “causes” the other variable.

Graph “year” vs. “# AIDS cases diagnosed.” Do not include pre-1981. Label both axes with words. Scale both axes.

Enter your data into your calculator or computer. The pre-1981 data should not be included. Why is that so?

Write the linear equation, rounding to four decimal places:

We don’t know if the pre-1981 data was collected from a single year. So we don’t have an accurate x value for this figure.

Regression equation: ŷ (#AIDS Cases) = –3,448,225 + 1749.777 (year)

Coefficients
Intercept –3,448,225
X Variable 1 1,749.777

Calculate the following:

  1. a = _____
  2. b = _____
  3. correlation = _____
  4. n = _____

Get Jobilize Job Search Mobile App in your pocket Now!

Get it on Google Play Download on the App Store Now




Source:  OpenStax, Introductory statistics fall 2014. OpenStax CNX. Jun 30, 2014 Download for free at http://legacy.cnx.org/content/col11669/1.1
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Introductory statistics fall 2014' conversation and receive update notifications?

Ask