Name: Date: Period:
Linear Regression and Correlation Homework
Due Friday 11/17/17
1. A regression equation for predicting the price of a car (in thousands of dollars) from fuel efficiency (in mpg) is given by .
a. Interpret the slope of the regression line in context.
b. Interpret the y-intercept in context.
c. Predict the price of a car that gets 25 miles per gallon.
d. A car used to create the regression line costs $28,000 and gets 20 miles per gallon. Find the residual for this car. Does the regression line overestimate or underestimate the data at this point?
2. Explain what a residual is. If you write a formula, explain what the parts of the formula represent.
3. Sum of squared errors
5. Describe the following values of the correlation coefficient in terms of strength and direction:
6. Convince me that you will be an informed and skeptical consumer of information in the real world by explaining what “correlation does not imply causation” means. Give an example.
7. True or False?