7. A researcher found that the relationship between the appraised value of a hou

Question

7. A researcher found that the relationship between the appraised value of a house (in thousands of dollars) and its age (in years) could be summarized by the regression equation:

Appraised value = 400.8 - 2.5 * age.

Interpret the value of the slope in the context of this study.

*

8. An investor asks: How are stock prices influenced by interest rates?

Identify the explanatory and response variables.

9. The graph below shows the relationship between average daily temperature and the amount of ice cream sales at an ice cream stand.

Based on the graph, what is the best prediction for the amount of ice cream sales on a day when the average temperature is 240C?

10. In New York State there is a fairly strong positive correlation between principals’ salaries and the reading scores of their students. (This is true.) Upon learning this, a politician recommends that principals’ salaries be increased because this will cause students’ reading scores to increase. Good idea? (Use your knowledge of statistics to explain your answer.)

Hours New Subscriptions 1224 5357 1458 6177 1006 4795 1395 5692 1350 4312 921 3421 704 2624 1154 4087 1168 4934 803 2546 830 3591 905 4271 1435 5836 1349 5201 965 3775 985 3592 1117 4566 840 2974 1412 5673 940 3554 1090 4399 1498 6143 1240 4827 1055 5418 $700 $600 $500 $400 $300 $200 $100 $0 10 12 14 16 18 20 22 24 26 Temperature C

Explanation / Answer

7. It means that for a year increase in age the appraised value decreases by 2.5

8. The explanatory variable is the one which explaines something else( the response). It is also known as indepdent variable - here it is the "Stock Prices".

Response variable is stock prices

9. $575, this we get from graph

10. No. correlation is not causation. The cause -effect may be opposite iin this case. Alternatively, there might be a latent variable effecting this.

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.