Unit 8 LAB Stat Project LAB Unit 8: Stat Project [(Required/Graded) 25 points) CSLO A.7, CSLO B.3, CSLO F.6, CSLO G] The goal of this lab is to test the linear correlation between the two Quantitative Variables from Lab 1; to find the equation of the regression line for the variables; and to use the line for prediction. Important Note: The interpretation of Microsoft Excel output is part of this lab, but the output itself is not sufficient to complete this lab. You may use the scatter plot from the computer but it must be titled and labeled appropriately. All other parts of the lab must be submitted on separate paper and answers must be given in complete sentences. 1. Consider the relationship between the two quantitative variables from Lab 1. The data can be represented as ordered pairs (x, y) where x is the independent or explanatory variable and y is the dependent or response variable When you choose x and y, consider if changes in one variable explain or even cause changes in a second variable. Call the explanatory (predictor) variable x and the response variable y. If you don't see such a relationship, choose the value of the Quantitative Variable V2 for x and the value of the Quantitative Variable V3 for y. Use Microsoft Excel to construct a scatter plot for your 40 ordered pairs of data. Clearly label your graph. Include a label and scale for both axes and a title. 2. Comment about the information shown in the scatter plot, in terms of any apparent linear correlation. Give a reasonable estimate for the linear correlation coefficient based on the graph. 3. Find the value for r, the linear correlation coefficient, using Microsoft Excel. 4. Perform a hypothesis test of the significance of r ( Use 0.05 .), the linear correlation coefficient. Clearly state the null and alternative hypothesis. Include a sketch.State your conclusion clearly and completely. Does your answer agree with your response to #2 above? 5. Regardless of the significance of the correlation coefficient from #3 above, find the equation of the regression line, using Microsoft Excel. -Should you use this line for prediction purposes? Why or why not? 6. What is the slope of your regression line? Write a statement interpreting the meaning of the slope for your data. [For example, if the slope is 4.5 and x is number of stocks and y total $ investment , you could say that for every increase of 1 stock, you predict the $ value of the investment increases by 4.5(in 000) in dollar.] 7. What is the y - intercept of your line? Write a statement interpreting the meaning of the y- intercept for your data. For your data set, does this y-intercept make sense? Explain. 8. Summarize your results of this lab for someone who is not familiar with statistical terminology but might be interested in your data. In other words, what kind of a general relationship did you find, if any, between these 2 variables? Stat Project Points: 25 Points Stat Project Estimated CU Time: 3 CU