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Year x Price in $ per Million Btu 1990 6.31 1991 6.14 1992 6.32 1993 6.75 1994 6.8 1995 6.34 1996 7.46 1997 8.12 1998
Year |
x | Price in $ per Million Btu |
1990 |
| 6.31 |
1991 |
| 6.14 |
1992 |
| 6.32 |
1993 |
| 6.75 |
1994 |
| 6.8 |
1995 |
| 6.34 |
1996 |
| 7.46 |
1997 |
| 8.12 |
1998 |
| 8.04 |
1999 |
| 8.25 |
2000 |
| 9.58 |
2001 |
| 11.28 |
2002 |
| 9.25 |
The following table shows data for the cost of natural gas in Maryland (in dollars per Million Btu) for x years since 1990.
- Define the explanatory and response variables for this problem.
- Use the calculator to obtain the linear regression line of best fit for the original prices; round to three decimal places. Write this prediction equation in the form:
- In a brief sentence, interpret the slope in the context of the problem.
- Predict the price in dollars per million Btu for the year 2010. Then calculate the residual for the year 2010 if the actual price in 2010 was $11.57 per million Btu.
- What is the correlation coefficient, rounded to two decimal places. Is the linear association between the variables weak or strong? How do you know?
- Conduct an outlier test as defined by the OUTLIER FORMULA and indicate any low or high outliers. (Show all work)
6.31 | 6.14 | 6.32 | 6.75 | 6.8 | 6.34 | 7.46 | 8.12 | 8.04 | 8.25 | 9.58 | 11.28 | 9.25 |
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