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A research analyst for an oil company wants to develop a model to predict miles per gallon based on highway speed. An experiment is designed in which a test car is driven at speeds ranging from 10 miles per hour to 75 miles per hour.
a) Set up a scatter diagram for speed and miles per gallon.
b) Apply simple regression analysis, and then interpret the meaning of the slope b1 in this problem.
c) Interpret the meaning of the regression coefficient b0 in this problem.
d) Determine the coefficient of determination, r2, and interpret its meaning.
e) How useful do you think this regression model is for predicting mileage?
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Parents put $1000 into a saving account at birth of their children. If the account earns interest at 7% p.a compounded yearly, how much money will be in the account when their chil
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