TravelAir.com samples domestic airline flights to explore the relationship between airfare and distance. The service would like to know if there is a correlation between airfare and flight distance. If there is a correlation, what percentage of the variation in airfare is accounted for by distance? How much does each additional mile add to the fare? The data follow:

a. Draw a scatter diagram with Distance as the independent variable and Fare as the dependent variable. Is the relationship direct or indirect?

b. Compute the correlation coefficient. At the .05 significance level, is it reasonable to conclude that the correlation coefficient is greater than zero?

c. What percentage of the variation in Fare is accounted for by Distance of a flight?

d. Determine the regression equation. How much does each additional mile add to the fare? Estimate the fare for a 1,500-mile flight.

e. A traveler is planning to fly from Atlanta to London Heathrow. The distance is 4,218 miles. She wants to use the regression equation to estimate the fare. Explain why it would not be a good idea to estimate the fare for this international flight with the regression equation.

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Origin Destination Distance Fare Detroit, MI Baltimore, MD $109 Myrtle Beach, SC Sacramento, CA 636 2,395 2,176 252 Las Vegas, NV Sacramento, CA Atlanta, GA Boston, MA Chicago, IL Columbus, OH Fort Lauderdale, FL Chicago, IL Philadelphia, PA Houston, TX Philadelphia, PA Seattle, WA 221 605 151 403 Orlando, FL Miami, FL 138 1,258 209 Covington, KY Minneapolis, MN Los Angeles, CA Indianapolis, IN San Francisco, CA Raleigh/Durham, NC Midland/Odessa, TX 264 254 627 259 2,342 215 177 128 2,521 348 1,050 224 Houston, TX 441 175 Cleveland, OH Baltimore, MD Dallas/Ft.Worth, TX 1,021 256 Columbus, OH Covington, KY San Diego, CA 336 121 Boston, MA 752 252 Kansas City, MO 1,333 206 Milwaukee, WI Portland, OR Phoenix, AZ Phoenix, AZ Washington, DC San Jose, CA 1,460 2,350 167 308 621 152 St. Louis, MO Baltimore, MD Houston, TX Houston, TX Burbank, CA Atlanta, GA Minneapolis, MN Atlanta, GA Kansas City, MO Baltimore, MD New Orleans, LA 737 175 Orlando, FL 853 191 Seattle, WA New York, NY 1,894 2,465 231 251 San Diego, CA New York, NY West Palm Beach, FL 1,891 1,028 291 260 545 123 Seattle, WA Portland, ME Washington, DC 1,489 211 452 139 969 243