AQ056-0-M-Statistics Regression Analysis
Answer the following questions using SPSS.
1. Suppose that a random sample of five families had the following annual income and savings.
Income (X) Savings (Y)
(£’000) (£’000)
8 0.6
11 1.3
9 1.0
6 0.7
5 0.3
(a) Plot this data on an appropriate labeled scatter diagram.
(b) Obtain the least square regression equation of savings (Y) on income (X) and
plot the regression line on a graph.
(c) Estimate the savings if the family income is £ 7000.
(d) Find the product moment correlation coefficient and interpret the value.
(e) Find the value of coefficient of determination and interpret the value.
2. As part of an investigation into levels of overtime working, a company decides to tabulate the
number of orders received weekly and compare this with the total weekly overtime worked to
give the following:
Week number 1 2 3 4 5 6 7 8 9 10
Orders received 83 22 107 55 48 92 135 32 67 122
Total overtime 38 9 42 18 11 30 48 10 29 51
Use the method of least squares to obtain a regression line that will predict the level of total
overtime necessary for 100 orders
3. The following table shows the marks (x) obtained in a Christmas examination and the marks
(y) obtained in the following summer examination by a group of nine students.
Student A B C D E F G H I
Christmas 57 35 56 57 66 79 81 84 52
Summer 66 51 63 34 47 70 84 84 53
(a) Find the equation of the estimated least squares regression line of y on x.
(b) A tenth student obtained a mark of 70 in the Christmas examination but was absent
from the summer examination. Estimate the mark that this student would have
obtained in the summer examination.
4. For a period of three years a company monitors the number of units of outputs produced per
quarter and the total cost of producing the units. The table below shows their results.
Units of output (x) 14 29 55 74 11 23 47 69 18 36 61
1000’s
Total cost (y) RM1000 35 50 73 93 31 42 65 86 38 54 81
(a) Draw a scatter diagram.
(b) Calculate the equation of the regression line of y on x and draw this line on your
scatter diagram.
The selling price of each unit of output is RM1.60.
(c) Use your graph to estimate the level of output at which the total income and total
costs are equal.
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AQ056-0-M-Statistics Regression Analysis
(d) Give a brief interpretation of this value.
5. A company wants to know about the effectiveness of radio advertisements on the sales of its
products. The marketing manager of the company selected 10 geographical regions at
random, and buys advertisement time for a month at a local radio station in each region. The
table below shows the advertisement time per week and the total sales during the month the
advertisement is aired.
Geographical Region A B C D E F G H I J
Advertisement time per week 10 6 8 9 11 7 15 6 8 5
(minutes)
Total sales (thousand RM) 17 14 19 14 20 16 23 14 17 13
(a) Plot a scatter diagram for the data.
(b) Find the regression equation for the total monthly sales on the air time per week. Give
your answers in the form y = mx + c with the constants m and c correct to two
decimal places.
(c) Draw this regression line on your scatter diagram.
(d) Estimate total monthly sales for a region who receiving the advertisement for
duration of 13 minutes every week for a whole month.
Answers:
1) (a) y = 0.148x – 0.376 (b) ₤660
2) 38.23
3) (a) y = 0.722x + 15.83 (b) 66 marks
4) (b) y = 0.965x + 20.569
5) (b) y = 0.95x + 8.63 (d) 20.98
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