For a particular company, the cost of a flat screen TV is dependent on its size. Six TVs are randomly selected and the size (x) and the cost (y) are recorded below

x (size in inches ) 40 34 58 24 62 60

y (cost) $650.50 $459.80 $703.90 $310.15 $855.90 $789.45

(i) Draw a scatter diagram for the above data

(ii) Find the simple linear regression equation that best fits your data using the techniques of linear regression. Please show all workings.

(iii) If a TV were 44 inches, using your equation from above, what would you predict to be the cost?

(iv) Calculate the linear correlation coefficient (r) of this simple linear regression and interpret its meaning. (ie. Is this linear regression equation good at predicting a TV's cost, based on size?)

(v) Use MegaStat to verify your answer to part i & ii above. Place your x values and y values in two separate columns on an Excel spreadsheet and complete "Scatterplot". Submit your Output