** ATTENTION: THIS IS A QUIZ –
DO NOT PROVIDE/RECEIVE ANY HELP ON THIS ASSIGNMENT ** TAKE HOME QUIZ #4 (Chapter 4) Name________________________________ 1)
Suppose we want to predict the amount remaining on a college loan based on its age. Use the table below from a small college to answer the following questions.
a)
Use your calculator to create a scatterplot. Describe the scatterplot in terms of direction, form, and strength (2 points). b)
Use your calculator to determine the correlation coefficient. Round to four decimal places. How does this correlation coefficient help justify your explanation in part a? (2 points) c)
Use your calculator to find the linear regression equation. Be sure to use correct notation when writing your answer. Round to two decimal places (1 point). d)
State the slope and interpret it in the context of the problem (2 points). e)
Estimate the remaining balance on a loan after 6 years using your linear regression equation. (1 point) f)
The college’s financial aid office reports that the average balance remaining after 6 years is $4300. What is the residual for this 6-year-old loan? Was this an over or an underestimate? (2 points) Number of Years Remaining Loan Balance 4 6300 4 5800 5 5700 5 4500 7 4500 7 4200 8 4100 9 3100 10 2100 11 2500 12 2200
