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Questions: From a sample of ten towns in the North-East of England data on male unemployment and car ownership was obtained. This data is presented

Questions:

From a sample of ten towns in the North-East of England data on male unemployment and car ownership was obtained. This data is presented in the following table:

Town A B C D E F G H I J
% of males unemployed (x) 9.3 10.2 13.6 8.9 5.1 6.6 12.5 5.7 8.5 4
% of households with no car (y) 23.4 28.7 45.9 39 24.1 26.7 46.1 22.9 32.8 22.2

Summary Statistics:

x = 84.4, y = 311.8, x^2 = 801.26, y^2 = 10511.06, xy = 2855.21

1. Construct a scatter diagram of this data and describe the relationship.

2. Calculate the correlation coefficient and comment.

3. Determine the regression line and draw this on your scatter diagram.

4. Use the regression line to predict y when x = 7 per cent and interpret the result.

5. State the reason why this prediction can be trusted.

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