Q 1.

part j options: a) approximate probate fees and taxes, net taxable estate; b) approximate probate fees and taxes, net taxable estate

According to a flyer by a Prudential Insurance Company representative, the costs of approximate probate fees and taxes for selected net taxable estates are as follows. Net Taxable Estate ($) Approximate Probate Fees and Taxes ($) 600,000 30,000 750,000 92,500 1,000,000 203,000 1,500,000 438,000 2,000,000 688,000 2,500,000 1,037,000 3,000,000 1,350,000 El Part (a) Decide which variable should be the independent variable and which should be the dependent variable. 0 Independent: net taxable estate; Dependent: approximate probate fees and taxes 0 Independent: approximate probate fees and taxes; Dependent: net taxable estate El Part (b) Draw a scatter plot of the data. Fees and Taxes Fees and Taxes (in thousands) (in thousands) 1400 1400 o 1200 1200 1000 1000 300 800 600 600 400 400 200 Estate 200 O 0 1.0 1.5 2.0 2.5 3.0 (in millions) O 1.0 Fees and Taxes Fees and Taxes (in thousands) (in thousands) 700 500 600 400 500 300 :33 zoo 200 100 o Estate 100 o O o 1.0 1.5 2.0 2.5 3.0 (in millions) O 0 1.0 Estate 1.5 2.0 2.5 3.0 (in millions) Estate 1.5 2.0 2.5 3.0 (in millions) El Part (c) Does it appear from inspection that there is a relationship between the variables? Why or why not? 0 Yes, it appears that the approximate probate fees and taxes decrease as the net taxable esmte amounts increase. 0 Yes, it appears that the approximate probate fees and taxes increase as the net taxable estate amounts increase. 0 No, there is no visible relationship between the variables. Part (d) Calculate the least squares line. Put the equation in the form of: y = a + bx. (Round your slope to three decimal places and your intercept to the nearest whole number. ) y = x Part (e) Find the correlation coefficient r. (Round your answer to four decimal places.) r= Is it significant? Yes O No Part (f) Find the estimated total cost for a net taxable estate of $1,500,000. (Use your equation from part (d). Round your answer to the nearest whole number.) $ Find the estimated total cost for a net taxable estate of $2,500,000. (Use your equation from part (d). Round your answer to the nearest whole number.) $ Part (g) Does it appear that a line is the best way to fit the data? Why or why not? A line does appear to be the best way to fit the data because the data points follow a positive linear trend. O A line is the best way to fit the data because there is only one correct line that will fit a data set. O A line is the best way to fit the data because the slope of the line is positive and the linear correlation is positive. O A line is not the best way to fit the data because it does not touch all the data points.Are there any outliers in the above data? 0 Yes, (600,000, 30,000) is an outlier. 0 Yes, (1,500,000, 438,000) is an outlier. 0 Yes, (3,000,000, 1,350,000) is an outlier. O No, there are no outliers. Based on these results, what would be the probate fees and taxes for an estate that does not have any assets? (Round your answer to the nearest whole number.) What is the slope of the least squares (best-t) line? (Round your answer to three decimal places.) :| Interpret the slope. (Round your answer to three decimal places.) As the -Select- v increases by $1, the -Select- v increases by $ . The following are advertised sale prices of color televisions at an electronics store. Size (inches) Sale Price ($) 9 137 20 187 27 267 31 447 35 1177 40 2177 60 2497 Part (a) Decide which variable should be the independent variable and which should be the dependent variable. O Independent variable: sale price; Dependent variable: size O Independent variable: size; Dependent variable: sale priceEl Part (b) Draw a scatter plot of the data. Sale Price Sale Price Size (in) Size (in) Sale Price Sale Price Size (in) Size (in) Does it appear from inspection that there is a relationship between the variables? Why or why not? 0 Yes, it appears that the television cost increases with television size. 0 Yes, it appears that the television cost decreases with television size. 0 No, there is no visible relationship between the variables. Calculate the least squares line. Put the equation in the form of: 9 = a + bx. (Round your answers to three decimal places.) V=l:l+:|x Find the correlation coefficient r. (Round your answer to four decimal places.) Is it signicant? 0 Yes 0 No Find the estimated sale price for a 34 inch television. (Use your equation from part (d). Round your answer to two decimal places.) $_ Find the estimated sale price for a 52 inch television. (Use your equation from part (d). Round your answer to two decimal places.) $_ Does it appear that a line is the best way to t the data? Why or why not? 0 A line does appear to be the best way to t the data because the data follow a weak positive trend. 0 A line does not appear to be the best way to t the data because it does not touch all the data points. 0 A line does not appear to be the best way to t the data because the data do not follow a linear trend. 0 A line is the best way to t the data because the slope of the line is positive and the linear correlation is positive. Are there any outliers in the above data? 0 Yes, (9, 137) is an outlier. O Yes, (40, 2177) is an outlier. 0 Yes, (60, 2497) is an outlier. O No, there are no outliers. What is the slope of the least squares (best-t) line? (Round your answer to three decimal places.) :] Interpret the slope. As the size of the television by one inch, the sale price by $ |:] . eBook