Question
Eight (8) tourists were asked about their airfare expenses and their total budgeted amount for their last travel/holiday. Airfare (in $) 200 300 250 100
Eight (8) tourists were asked about their airfare expenses and their total budgeted amount for their last travel/holiday.
Airfare (in $) | 200 | 300 | 250 | 100 | 150 | 170 | 180 | 230 |
Total Budget (in $) | 2500 | 2800 | 2100 | 1200 | 1800 | 1900 | 2000 | 2700 |
(a) Draw the scatter plot and the line of best fit. What is the expected budget for an individual of this group if the airfare to a certain city of her choice is $140? And what is the expected airfare if her budget is $2,200?
(b) Determine if there is a correlation between the two variables assuming that all travel costs are determined by the travelers' economic status. Describe the correlation strength, provide your conclusion, and a practical recommendation for the airline industry.
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