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Studies have shown that the frequency with which shoppers browse Internet retailers is positively correlated to the frequency with which they actually make purchases. The
Studies have shown that the frequency with which shoppers browse Internet retailers is positively correlated to the frequency with which they actually make purchases. | ||||||||||||
The following data show respondents age and "How many minutes do you browse online retailers per year?" | ||||||||||||
Age (X) | Time (Y) | |||||||||||
16 | 470 | |||||||||||
17 | 319 | |||||||||||
19 | 365 | |||||||||||
22 | 387 | |||||||||||
22 | 293 | |||||||||||
22 | 509 | |||||||||||
22 | 464 | |||||||||||
28 | 274 | |||||||||||
28 | 431 | |||||||||||
28 | 462 | |||||||||||
28 | 626 | |||||||||||
30 | 383 | |||||||||||
33 | 601 | |||||||||||
34 | 598 | |||||||||||
35 | 676 | |||||||||||
35 | 571 | |||||||||||
35 | 612 | |||||||||||
36 | 749 | |||||||||||
39 | 693 | |||||||||||
39 | 505 | |||||||||||
40 | 716 | |||||||||||
42 | 603 | |||||||||||
43 | 509 | |||||||||||
44 | 575 | |||||||||||
48 | 609 | |||||||||||
50 | 557 | |||||||||||
50 | 662 | |||||||||||
51 | 760 | |||||||||||
52 | 428 | |||||||||||
54 | 616 | |||||||||||
58 | 702 | |||||||||||
59 | 775 | |||||||||||
60 | 750 | |||||||||||
Compute the correlation between Age and Time using Data Analysis. Include the labels in the Input Range and check the Labels checkbox. | ||||||||||||
A | B | |||||||||||
Age | Time | |||||||||||
age data | time data | |||||||||||
Compute the correlation using the Excel function =CORREL. If answers for #10 and 11 do not agree, there is an error. | ||||||||||||
The strength of the correlation motivates further examination. | ||||||||||||
a) Make a scatter plot linked to and near the data above, and with Age on the horizontal (X) axis. | ||||||||||||
b) Add to your chart | ||||||||||||
A meaningful title | ||||||||||||
Vertical axis label Time | ||||||||||||
Horizontal axis label Age | ||||||||||||
c) Complete the chart by adding Trendline and checking boxes | ||||||||||||
| ||||||||||||
Read directly from the chart: | ||||||||||||
a) Intercept = | ||||||||||||
b) Slope = | ||||||||||||
c) R2 = | ||||||||||||
Perform regression using Data Analysis. Select the Time data first, include the labels in row 4 in the Input Range, and check the Labels checkbox. | ||||||||||||
In the Regression output, highlight the Y-intercept red, the slope blue, and R2 green. | ||||||||||||
Use the Data Analysis output to predict the number of minutes spent by a 35-year old shopper. Enter = followed by the regression formula, | ||||||||||||
entering the intercept and slope into the formula by clicking on the corresponding cells in the regression output. | ||||||||||||
(Week 11 Presentation, slide 11) | ||||||||||||
Is it appropriate to use this data to predict the amount of time that a 75-year-old will spend browsing online retailers ? | ||||||||||||
Why or why not (Week 11 Presentation, slide 8)? | ||||||||||||
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