# Correlation and linear aggression problems

1. A commuter airline selected a random sample of 25 flights and found that the correlation between the number of passengers and the total weight of luggage stored is .94. Using the .05 significance level, can we conclude that there is a positive association between the 2 variables?
2. The following data show the retail price for 12 randomly selected laptop computers along with their corresponding processor speed in gigahertz.
 Computers Speed Price Computers Speed Price 1 2.0 \$2,017 7 2.0 \$2,197 2 1.6 \$922 8 1.6 \$1,387 3 1.6 \$1,064 9 2.0 \$2,114 4 1.8 \$1,942 10 1.6 \$2,002 5 2.0 \$2,137 11 1.0 \$937 6 1.2 \$1,012 12 1.4 \$869
• Develop a linear equation that can be used to describe how the price depends on the processor speed.
• Based on your regression equation, is there one machine that seems particularly over or under priced?
• Compute the correlation coefficient between the 2 variables. At the .05 significance level, conduct a test of hypothesis to determine if the population correlation is greater than 0.
1. What is the relationship between the amount spent per week on recreation and the size of the family? A sample of 10 families in the New York area provided the following data:
 Family Size Amount spent 3 \$99 6 \$104 5 \$151 6 \$129 6 \$142 3 \$111 4 \$74 4 \$91 5 \$119 3 \$91
• Compute the correlation coefficient.
• Determine the coefficient of determination.
• Can we conclude that there a positive association between the amount spent on recreation and family size? Use the .05 significance level.

All problems must be in one excel document, multiple excel documents will not be accepted.