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In 1981 the British government conducted a survey on household spending on tobacco products and alcoholic beverages. They collected individual responses on the total
In 1981 the British government conducted a survey on household spending on tobacco products and alcoholic beverages. They collected individual responses on the total weekly spending per household (in British pounds sterling, ) for tobacco products and alcoholic beverages, respectively and then averaged the responses for each of the 11 regions of Great Britain. The data are available in the file "Alcohol Tobacco.txt" on Canvas website and in the table below. Region North Alcohol Tobacco 6.47 4.03 Yorkshire 6.13 3.76 Northeast 6.19 3.77 East Midlands 4.89 3.34 West Midlands 5.63 3.47 East Anglia 4.52 2.92 Southeast 5.89 3.20 Southwest 4.79 2.71 Wales 5.27 3.53 Scotland 6.08 4.51 Northern Ireland 4.02 4.56 (a) Use JMP to create a scatterplot of ALCOHOL (on the y-axis) against TOBACCO (on the x- axis). Is there an outlier in the plot? Describe what is unusual (in this context) about this specific region with respect to alcohol and tobacco household spending. (b) Write down the simple linear regression model complete with assumptions (identify the x and y in the context of this problem). (c) Remove the outlier from the data set for the remainder of this problem-. To remove the outlier you will need to right click on the observation and select 'hide and exclude.' Once you have removed the outlier you will need to refit the model with the new data set. Find the values of the estimates of the slope and intercept of the least squares regression line for this new data set. (d) (Keep the outlier removed.) Predict the average weekly household spending on alcoholic beverages in a region in which the average weekly household spending on tobacco products is 3.2.
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