STAT 403 Lab

2nd Semester 1434 - 1435 H

Assignment # 1

Name: ................................................................... ID: ...........................

Question#1:

Suppose you are a consultant to the local Tourism Authority and the CEO of the
Authority would like to know whether a family’s annual expenditure on recreation is
related to their annual income. In addition, if there is a relationship, he would like you
to build a statistical model which quantifies the relationship between the two
variables. The following data set consisting of a random sample of 20 families,
collected last year

From the previous data, solve the following questions:

a. Obtain scatter plot between X and Y (Interpret)
b. Obtain the estimated regression function. Plot the estimated regression function
and the data. does a linear regression function appear to give a good fit here?
c. Obtain regression equation and interpret its coefficients.
d. Obtain a point estimate of Y when X=50,000.
e. Test the hypothesis that the slope=0 (Comment)
f. Obtain the confidence interval of intercept and slop (Show Details)
g. Obtain the correlation analysis

I. Tahani Baseer