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Assignment #1

Uploaded by

shivani rawat
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BSMM-8720: Data Analytics & Project Management

Assignment #1

Due Date: 13 June 2023 (Individual Submission)

1. Consider the data given below on monthly average gas prices in Belleville, ON.

110 125 99 115 119 95 110 132 85

a) Compute the mean.


b) Compute the median.
c) What is the mode?
d) Compute the range.
e) Compute the variance.
f) Compute the standard deviation.

2. The number of orders received per day at a clothing website in British Columbia has a
mean of 1175 and a standard deviation of 250.

a) One day the number of clothing orders received is 1500. Calculate its standardized value
(its z-score).
b) What does its z-score tell us?
c) Another day the number of clothing orders received is 950. Calculate its standardized
value (its z-score).
d) What does its z-score tell us?

3. Consider the following data on the average share price of a Canadian mining company
and tons of copper extracted per day over 10 quarters.

Share Copper
price ($) (in tons)
2 10
3 11
7 13
9 14
10 18
10 20
12 20
15 22
16 22
20 26

a) Prepare a scatterplot.
b) What can you say about the direction of the association?
c) What can you say about the form of the relationship?
d) What can you say about the strength of the relationship?

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4. The profits and costs for a health food restaurant in Edmonton are given in the table over
the last 6 years.
Profits Costs
($million) ($million)
7 20
3 14
9 15
10 30
15 32
15 40

a) Compute the means for profits and costs.


b) Compute the standard deviations for profits and costs.
c) Compute the correlation coefficient.
d) Interpret the correlation coefficient.
e) What would be the correlation coefficient if profits and costs were both measured in
thousands of dollars instead of millions?

5. Data from a sample of employees from a large multinational corporation were


used to estimate the following least squares regression equation:
Salary = 36775 + 1590 Years of Experience
a. What is the explanatory variable?
b. What is the response variable?
c. What does the slope mean in this context?
d. What does the y-intercept mean in this context? Is it meaningful?

6. Based on the regression equation from the previous question,


Salary = 36775 + 1590 Years of Experience,
a. What is the predicted salary for an employee with 10 years of experience?
b. If the salary for an employee with 10 years of experience turned out to be $56,500,
what is the residual?
c. What is the predicted salary for an employee with 20 years of experience?
d. If the salary for an employee with 20 years of experience turned out to be $64,550,
what is the residual?

7. Suppose that the correlation, r, between two variables x and y is +0.77.


a. Is the slope of the estimated regression equation relating x and y positive or negative?
b. For an x value that is 1 standard deviation above its mean, how many standard
deviations above its mean would you predict the y value to be?
c. What would you predict about a y value if the x value is 2 standard deviations above its
mean?
d. What would you predict about a y value if the x value is 2 standard deviations below its
mean?

2
8. A real estate agency fit a regression equation to determine the length of time a property is
on the market (number of months) before it sells based on asking price (in thousands of
dollars). The following results were obtained.
Time on Market = -0.64 + .041 Asking Price
R2 = 50.5%
a. Interpret the meaning of R2.
b. Is the correlation between Time on Market and Asking Price positive or negative?
How do you know?
c. What is the correlation between Time on Market and Asking Price?
d. What proportion of the variability in Time on Market is not accounted for by Asking
price?

9. Students in a large statistics class were surveyed. Here is a regression predicting shoe-
size from height (inches) and weight (lbs):

Dependent variable is: shoe size


R squared = 71.2% R squared (adjusted) = 71.0%
s = 1.033 with 216 - 3 = 213 degrees of freedom

Source Sum of Squares df Mean Square F-ratio


Regression 562.446 2 281.223 264
Residual 227.247 213 1.06689

Variable Coefficient SE(Coeff) t-ratio P-value


Intercept -13.2086 1.245 -10.6 ≤ 0.0001
height 0.290390 0.0220 13.2 ≤ 0.0001
weight 0.020321 0.0030 6.75 ≤ 0.0001

• Write the regression model.


• Interpret R2

10. Consider the following data.

y x1 x2
35 9 8
40 8 10
50 4 15
65 3 14
40 10 13
30 12 18

The estimated multiple regression equation for these data has b0 = 63.4, b1= -3.33 and b2 =
0.417. What is the predicted value of y when x1 = 9 and x2 = 8?

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