BUSINESS STATISTICS

INDIVIDUAL ASSIGNMENT

Presented byAkanksha Chaudhary PROV/A/03

544 - 7. Would you expect more reliable cars to cost more? Consumer Reports rated 15 upscale sedans. Reliability was rated on a 5point scale- poor (1), fair (2), good (3), very good (4), and excellent (5). The price and reliability rating for each of the 15 cars are shown.
Q. Develop a scatter diagram for these data with the reliability rating as the independent variable. SCATTER DIAGRAM - PRICE AND RELIABILITY
45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 0 1 2 3 4 5 6

Q. Develop the least squares estimated regression equation. Regression Statistics Multiple R 0.7022 R Squared 0.4931 Adjusted R Squared 0.4509 Standard 1856.468 Error Observations 14

Regression Residual Total

df 1 12 13

SS 4,02,39,591.87 4,13,57,680.13 8,15,97,272.0

MS 4,02,39,591.87 34,46,473.34

F 11.675

Significance F 0.00511

The equation of Y on X is Y = 1302.19X+ 32484.925 Regression Statistics Multiple R 0.7065 R Squared 0.499 Adjusted R Squared 0.461 Standard Error 1.0337 Observations 15

Regression Residual Total

df 1 13 14

SS 13.843 13.89 27.734

MS 13.843 1.0685

F 12.955

Significance F 0.00324

Intercept X Variable 1

Coefficient 17.158

Standard Error 3.906

Stat 4.393204

P-value 0.0007 0.0032

Lower 95% 8.721 -0.00061

Upper 95% 25.597 -0.00015

The equation of Y on X is Y=-0.00038X+ 17.158 Q. Based upon your analysis, do you think more reliable cars cost more? Explain. Correlation coefficient between price and reliability is -0.7065 negative correlations. This means that it is not necessary that more reliable cars cost more. Q. Estimate the price for an upscale sedan that has a good reliability rating. For X=3, the value of Y = 36391.495 Price for an upscale sedan with a good reliability rating is 36,391.50.

555 - 8. Mountain bikes that cost less than $1000 now contain many of the high quality components that until recently were only available on high priced models. Today, even the sub $1000 models often offer supple suspensions, clip-less pedals, and highly engineered frames. An interesting question is whether higher price still buys a higher level of handling, as measured by the bikes sidetrack capability. To measure sidetrack capability, Outside Magazine used a rating scale from 1 to 5, with 1 representing an average rating and 5 representing an excellent rating.
Q. Develop a scatter diagram for these data with the sidetrack capability as the independent variable. Scatter Diagram between Price and Sidetrack Ability

1800 1600 1400 1200 1000 800 600 400 200 0 0 1 2 3 4 5 6

Q. Does it appear that higher priced models have a higher level of handling? Explain. The correlation between the price and sidetrack capability is +0.8571, indicating a moderate high correlation. This shows that higher priced models do have a higher level of handling.

Q. Develop the least squares estimated regression equation. The regression equation of X on Y is X = 0.0036Y - 1.02 The regression equation of Y on X is Y=204.25X + 490.2 Q. What is the estimated price for a mountain bike if it has a sidetrack capability rating of 4? At X=4, the value of Y, i.e. the price of the bike is $1037.20.

Regression Statistics Multiple R 0.8571 R Squared 0.7346 Adjusted R Squared 0.701 Standard 0.806 Error Observations 10

Regression Residual Total

df 1 8 9

SS 14.39 5.2023 19.6 Standard Error 0.851 0.00076

MS 14.39 0.6503

F 22.141

Significance F 0.00153

Intercept X Variable 1

Coefficients -1.02 0.0036

Stat -1.199 4.7054

P-value 0.2649 0.00153

Lower 95% -2.98 0.0018

Upper 95% 0.942 0.00536

The equation of Y on X is Y = 0.0036X - 1.02

557 - 12. A personal watercraft (PWC) is a vessel propelled by water jets designed to be operated by a person sitting, standing, or kneeling on the vessel. In the early 1970s, Kawasaki Motors Corp. USA introduced the JET SKI watercraft, the first commercially successful PWC. Today, jet ski is commonly used as a generic term for personal watercraft. Data for 10 threeseater PWC is given.
Q. Develop a scatter diagram for these data with weight as the independent variable. Scatter Diagram between weight and price

12000 10000 8000 6000 4000 2000 0 700 720 740 760 780 800 820 840

Q. What does the scatter diagram developed indicate about the relationship between weight and price? The scatter diagram shows a positive correlation between weight and price. Q. Use the least squares method to develop the estimated regression equation. Regression equation of X on Y is X=0.0219Y + 570.521 Regression equation of Y on X is Y=22.444X - 8129.442 Q. Predict the weight for a three seater PWC with a weight of 750 pounds. Price of a three-seater of weight 750 pounds, i.e. value of Y for X=750 is $8704.1756.

Q. The Honda AquaTrax F-12 weighs 750 pounds and has a price of $9500. Shouldnt the predicted price you developed for a PWC with a weight of 750 pounds also be $9500? Price at 750 pounds of weight, i.e. X for Y=750 is $9500, but the actual price is $8704.176. This shows a deviation of $795.8240

633 - 7. Designers of backpacks use exotic material such as super nylon Delrin, high-density polyethylene, aircraft aluminum, and thermo-molded foam to make packs that fit comfortably and distribute weight to eliminate pressure points. The data shows the capacity in cubic inches, comfort rating, and price for 10 backpacks tested by Outside Magazine. Comfort was measured using a rating from 1 to 5, with a rating of 1 denoting average comfort and a rating of 5 denoting excellent comfort.

Q. Determine the estimated regression equation that can be used to predict the price of a backpack given the capacity and the comfort rating. The Regression equation of Y on X is Y = 54,764.4161 - 13.6063X1 + 4088.637X2

Manufacturer and Model Camp Trails Paragon II EMS 5500 Lowe Alpomayo 90+20 Marmot Muir Kelly Bigfoot 5200 Gregory Whitney Osprey 75 Arc Teryx Bora 95 Dana Design Terraplane LTW The Works @ Mystery Ranch Jazz

X1 4330 5500 5500 4700 5200 5500 4700 5500 5800 5000 51730

X2 2 3 4 3 4 4 4 5 5 5 39

Y 190 219 249 249 250 340 389 395 439 525 3245

X2^2 4 9 16 9 16 16 16 25 25 25 161

X1^2 18748900 30250000 30250000 22090000 27040000 30250000 22090000 30250000 33640000 25000000 269608900

X1X2 8660 16500 22000 14100 20800 22000 18800 27500 29000 25000 204360

YX1 822700 1204500 1369500 1170300 1300000 1870000 1828300 2172500 2546200 2625000 126555

YX2 380 657 996 747 1000 1360 1556 1975 2195 2625 13491

Q. Interpret b1 and b2. The value of b1=-13.606, which refers to the comfort cost. This indicates that each dollar spent on the comfort cost is expected to contribute -3.61 towards the price of the product, keeping the capacity cost constant. The value of b2=4088.637 that refers to the capacity cost. This indicates that each dollar spent on the capacity cost is expected to contribute 4088.637 towards the price of the product, keeping the comfort cost constant. Q. Predict the price for a backpack with a capacity of 4500 cubic inches and a comfort rating of 4. The cost of the product is 9890.61.