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Construct a scatter plot for the data

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Reference no: EM13246696

The research team thought that the life-cycle cost was related to the number of seats produced annually. To test this idea, they collected data for existing seats that had been manufactured for the CUP2 for the past ten years. The data is summarized in the table below.

year:                 89        90        91        92        93        94        95        96        97        98

Number of seats       314     412     389     370     310     287     280     150     160   140

produced:

(in hundreds)

Life-cycle Cost:         395     370     380    381     390     400     395     420     430   450       

(mean to nearest dollar)

A. Construct a scatter plot for the data. Does the relationship appear to be linear?

B. State appropriate null and alternate hypotheses with regard to correlation.

C. Compute the Pearson r.

D. Test it for significance at the .05 level. Based on the p-value, make a decision about the null hypothesis (Reject of Fail to Reject).

E. Compute the regression line for the data.

F. How much (what percent) of the variation is explained by the regression line?

G. According to the regression model, what is the predicted life-cycle cost if 460 seats are produced?

Reference no: EM13246696

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