Lobster prices. Over the past few decades both the demand for lobster and the price of lobster have continued to increase. The scatterplot shows this increase in the Price of Maine lobster (Price/pound) since 1990.

a) Describe the increase in the Price of lobster since 1990.

b) The for the regression equation is 88.5%. Interpret the value of .

c) Find the correlation.

d) Find the linear model and examine the plot of residuals versus predicted values. Is the Equal Spread Condition satisfied?

(Use time starting at 1990 so that 1990 = 0.)

Transcribed Image Text:

Price/lb $4.50- $4.00 $3.50+ $3.00+ $2.50 $2.00+ + + + 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Year