Tutor Marked Assignment 4

Correlation and Regression

 There are 6 parts to this question. Complete each part and then pass your answers to your tutor for marking.

Authority Population Amount spent (£m)
A 145,000 7.2
B 236,000 9.5
C 95,000 3.6
D 142,000 4.2
E 178,000 9.3
F 263,000 10.1
G 74,000 3.9
H 137,000 5.6
I 89,000 3.3
J 312,000 11.4
  The table shows ten mythical local authorities with the population of each and the amount spent on a certain aspect of health care.

(a)

Draw the scatter diagram on squared paper.
(b)

Make up a table which will allow you to estimate the amount spent for a given population
(so get your x and y the right way round).
(c) Calculate the equation of the line of regression and also the value of the correlation coefficient.
(d) Draw the regression line on your scatter diagram.
(e)

Use the line of regression to make a point estimate about the amount which ‘should’ be spent by local authorities with the following populations: (i) 153,000 (ii) 406,000

(f) Make comments about the reliability of each of these estimates, making sure you use one of your previous calculations to back up your argument.

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