STAT 200 Week 7 Homework Problems

10.1.2

Table #10.1.6 contains the value of the house and the amount of rental income in a year that the
house brings in ("Capital and rental," 2013). Create a scatter plot and find a regression equation
between house value and rental income. Then use the regression equation to find the rental
income a house worth $230,000 and for a house worth $400,000. Which rental income that you
calculated do you think is closer to the true rental income? Why?

Table #10.1.6: Data of House Value versus Rental

Value Rental Value Rental Value Rental Value Rental
81000 6656 77000 4576 75000 7280 67500 6864
95000 7904 94000 8736 90000 6240 85000 7072
121000 12064 115000 7904 110000 7072 104000 7904
135000 8320 130000 9776 126000 6240 125000 7904
145000 8320 140000 9568 140000 9152 135000 7488
165000 13312 165000 8528 155000 7488 148000 8320
178000 11856 174000 10400 170000 9568 170000 12688
200000 12272 200000 10608 194000 11232 190000 8320
214000 8528 208000 10400 200000 10400 200000 8320
240000 10192 240000 12064 240000 11648 225000 12480
289000 11648 270000 12896 262000 10192 244500 11232
325000 12480 310000 12480 303000 12272 300000 12480
450000

400000

350000

300000
House Value

250000

200000

150000

100000

50000

0
0.5 1 1.5 2 2.5 3 3.5
Rental Value
The regression equation is:

y= 5364 + 0.024x

x= 230000 y=5364 + 0.024(230,000) = 10,884

x= 400,000 y= 5364+ 0.024(400,000) = 14,964

The rental income that is closer the true rental income is 10, 884.

10.1.4

The World Bank collected data on the percentage of GDP that a country spends on health
expenditures ("Health expenditure," 2013) and also the percentage of women receiving prenatal
care ("Pregnant woman receiving," 2013). The data for the countries where this information are
available for the year 2011 is in table #10.1.8. Create a scatter plot of the data and find a
regression equation between percentage spent on health expenditure and the percentage of
women receiving prenatal care. Then use the regression equation to find the percent of women
receiving prenatal care for a country that spends 5.0% of GDP on health expenditure and for a
country that spends 12.0% of GDP. Which prenatal care percentage that you calculated do you
think is closer to the true percentage? Why?

Table #10.1.8: Data of Health Expenditure versus Prenatal Care

Health Prenatal
Expenditur Care (%)
e (% of
GDP)
9.6 47.9
3.7 54.6
5.2 93.7
5.2 84.7
10.0 100.0
4.7 42.5
4.8 96.4
6.0 77.1
5.4 58.3
4.8 95.4
4.1 78.0
6.0 93.3
9.5 93.3
6.8 93.7
6.1 89.8
 120

100

80
Health Expenditure

60

40

20

0
3 4 5 6 7 8 9 10 11
Prenatal Care

X₁: Percentage of GDP spent on health expenditure of a country.

X₂: Percentage of women that received prenatal care in a country.

n=15; ∑X₁=91.90; ∑X₁²=619.77; ∑X₂=1198.70; ∑X₂²=101110.53; ∑X₁X₂=

7438.24

The coefficient of correlation shows the degree of association between two

variables X₁ and X₂. Its range is from -1 to 1

If r = 0 then there is no linear correlation between X₁ and X₂ Graphically, the slope

is cero
If r < 0 then there is a negative association between X₁ and X₂ (i.e. when one
variable increases the other one decreases) In a graphic, the slope of the line is
negative.
If r > 0 then there is a positive association between X₁ and X₂ (i.e. Both variables
increase and decrease together)

The closer to 1 or -1 the coefficient is, the stronger the association between
variables.

The calculated coefficient 0.17 is close to zero, this means that presumably there
is no association between the percentage of GDP spent on health insurance and
the percentage of prenatal care received by women in the countries.

 Coefficient of determination

R²= r²= 0.17²= 0.0289⇒ 2.89%

The coefficient of determination shows the percentage of the variability of the

dependent variable is explained by the independent variable under the estimated
regression model.

Its range is 0 to 1 or, in percentage, 0 to 100%

If the value of R² is close to zero, this means that there is no functional

relationship between the dependent and independent variables, i.e. there is no
linear regression between the two variables.

If the value of R² is close to 100%, then there is a strong linear regression

between these two variables.
If we consider X₁ as the dependent variable and X₂ as the independent variable.

R²= 2.89% indicates that, in the context of the linear regression, almost 3% of the
variability of the GDP percentage spent on health expenditures ins explained by
the percentage of women that receive prenatal care. There is no linear regression
between these two variables.

10.2.2

Table #10.1.6 contains the value of the house and the amount of rental income in a year that the
house brings in ("Capital and rental," 2013). Find the correlation coefficient and coefficient of
determination and then interpret both.

Table #10.1.6: Data of House Value versus Rental

Value Rental Value Rental Value Rental Value Rental
81000 6656 77000 4576 75000 7280 67500 6864
 95000 7904 94000 8736 90000 6240 85000 7072
121000 12064 115000 7904 110000 7072 104000 7904
135000 8320 130000 9776 126000 6240 125000 7904
145000 8320 140000 9568 140000 9152 135000 7488
165000 13312 165000 8528 155000 7488 148000 8320
178000 11856 174000 10400 170000 9568 170000 12688
200000 12272 200000 10608 194000 11232 190000 8320
214000 8528 208000 10400 200000 10400 200000 8320
240000 10192 240000 12064 240000 11648 225000 12480
289000 11648 270000 12896 262000 10192 244500 11232
325000 12480 310000 12480 303000 12272 300000 12480

10.2.4

The World Bank collected data on the percentage of GDP that a country spends on health
expenditures ("Health expenditure," 2013) and also the percentage of women receiving prenatal
care ("Pregnant woman receiving," 2013). The data for the countries where this information is
available for the year 2011 are in table #10.1.8. Find the correlation coefficient and coefficient
of determination and then interpret both.

Table #10.1.8: Data of Health Expenditure versus Prenatal Care

Health Prenatal
Expenditur Care (%)
e (% of
GDP)
9.6 47.9
3.7 54.6
5.2 93.7
5.2 84.7
10.0 100.0
4.7 42.5
4.8 96.4
6.0 77.1
5.4 58.3
4.8 95.4
4.1 78.0
6.0 93.3
9.5 93.3
6.8 93.7
6.1 89.8

10.3.2
Table #10.1.6 contains the value of the house and the amount of rental income in a year that the
house brings in ("Capital and rental," 2013).
Test at the 5% level for a positive correlation between house value and rental amount.

Table #10.1.6: Data of House Value versus Rental

Value Rental Value Rental Value Rental Value Rental
81000 6656 77000 4576 75000 7280 67500 6864
95000 7904 94000 8736 90000 6240 85000 7072
121000 12064 115000 7904 110000 7072 104000 7904
135000 8320 130000 9776 126000 6240 125000 7904
145000 8320 140000 9568 140000 9152 135000 7488
165000 13312 165000 8528 155000 7488 148000 8320
178000 11856 174000 10400 170000 9568 170000 12688
200000 12272 200000 10608 194000 11232 190000 8320
214000 8528 208000 10400 200000 10400 200000 8320
240000 10192 240000 12064 240000 11648 225000 12480
289000 11648 270000 12896 262000 10192 244500 11232
325000 12480 310000 12480 303000 12272 300000 12480

10.3.4

The World Bank collected data on the percentage of GDP that a country spends on health
expenditures ("Health expenditure," 2013) and also the percentage of women receiving prenatal
care ("Pregnant woman receiving," 2013). The data for the countries where this information is
available for the year 2011 are in table #10.1.8.
Test at the 5% level for a correlation between percentage spent on health expenditure and the
percentage of women receiving prenatal care.

Table #10.1.8: Data of Health Expenditure versus Prenatal Care

Health Prenatal
Expenditur Care (%)
e (% of
GDP)
9.6 47.9
3.7 54.6
5.2 93.7
5.2 84.7
10.0 100.0
4.7 42.5
4.8 96.4
6.0 77.1
5.4 58.3
4.8 95.4
4.1 78.0
 6.0 93.3
9.5 93.3
6.8 93.7
6.1 89.8

11.1.2

Researchers watched groups of dolphins off the coast of Ireland in 1998 to determine what activities the
dolphins partake in at certain times of the day ("Activities of dolphin," 2013). The numbers in table
#11.1.6 represent the number of groups of dolphins that were partaking in an activity at certain times of
days. Is there enough evidence to show that the activity and the time period are independent for
dolphins? Test at the 1% level.

Table #11.1.6: Dolphin Activity

Period Row
Activity Total
Morning Noon Afternoon Evening
Travel 6 6 14 13 39
Feed 28 4 0 56 88
Social 38 5 9 10 62
Column 72 15 23 79 189
Total
11.1.4

A person’s educational attainment and age group was collected by the U.S. Census Bureau in 1984 to
see if age group and educational attainment are related. The counts in thousands are in table #11.1.8
("Education by age," 2013). Do the data show that educational attainment and age are independent?
Test at the 5% level.

Table #11.1.8: Educational Attainment and Age Group

Age Group Row
Education Total
25-34 35-44 45-54 55-64 >64
Did not 5416 5030 5777 7606 13746 37575
complete
HS
Competed 16431 1855 9435 8795 7558 44074
HS
College 1-3 8555 5576 3124 2524 2503 22282
years
College 4 or 9771 7596 3904 3109 2483 26863
more years
Column
Total 40173 20057 22240 22034 26290 130794

11.2.4

In Africa in 2011, the number of deaths of a female from cardiovascular disease for different age groups
are in table #11.2.6 ("Global health observatory," 2013). In addition, the proportion of deaths of
females from all causes for the same age groups are also in table #11.2.6. Do the data show that the
death from cardiovascular disease are in the same proportion as all deaths for the different age groups?
Test at the 5% level.

Table #11.2.6: Deaths of Females for Different Age Groups

Age 5-14 15-29 30-49 50-69 Total
Cardiovascular 8 16 56 433 513
Frequency
All Cause Proportion 0.10 0.12 0.26 0.52
11.2.6

A project conducted by the Australian Federal Office of Road Safety asked people many questions about
their cars. One question was the reason that a person chooses a given car, and that data is in table
#11.2.8 ("Car preferences," 2013).

Table #11.2.8: Reason for Choosing a Car

Safety Reliability Cost Performance Comfort Looks

84 62 46 34 47 27
Do the data show that the frequencies observed substantiate the claim that the reasons for
choosing a car are equally likely? Test at the 5% level.