Question

Can you answer me the question B and C more detail. THANK YOU!

Below is the data on costs and associated number of passengers for twelve 500-mile commercial airline flights using Boeing 737s during the same season of the year. Using the data given (you should be able to click on the data below and copy it into Excel), answer the following questions (Data for the question adopted from Business Statistics for Contemporary Decision Making by Ken Black): Number of Passengers Cost ($1000) 61 4.28 63 4.08 67 4.42 69 4.17 70 4.48 74 4.3 76 4.82 81 4.7 86 5.11 91 5.13 95 5.64 97 5.56

B) Determine the coefficient of determination, r2. Interpret the meaning of the coefficient of determination, r2 as relating to this problem.

Please show me the way how you can find r2 = 0.899. Thanks.

C) Using Excel, find/state the simple linear regression model for the above data. Please interpret the meaning of intercept value and the slope for this problem.

Please show me how you have the number 1.5698 and 0.0407. Thank you.

Answer 1

(B)

  

The value of R is 0.9482. This is a strong positive correlation, which means that high X variable scores go with high Y variable scores (and vice versa).

The value of R², the coefficient of determination, is 0.8991 = 89.91%.

R-squared is a statistical measure of how close the data are to the fitted regression line. It is also known as the coefficient of determination.

R-squared = Explained variation / Total variation

89.91% indicates that the model explains 89.91% of the variability of the response data around its mean.

(C)

Interpret the slope: If the number of passenger goes up by 1, then we predict cost ($1000) will increase by 0.0407.

Interpret the intercept: If the number of passenger is zero, then we predict that the cost ($1000) will be about 1.56979.