Problem One:
The manager of a catering company is using the number of people in the party to predict the cost of the drinks that are required for the event. The following are the data for 12 recently catered events:
|
Event
|
Number of People
|
Cost of Drinks
|
|
1
|
12
|
24
|
|
2
|
14
|
30
|
|
3
|
15
|
36
|
|
4
|
18
|
38
|
|
5
|
20
|
65
|
|
6
|
16
|
44
|
|
7
|
14
|
36
|
|
8
|
13
|
30
|
|
9
|
18
|
39
|
|
10
|
19
|
76
|
|
11
|
20
|
80
|
|
12
|
22
|
85
|
Complete the calculations below using this data. Show all of your work and clearly label each of your calculations.
- Provide a scatterplot
- Calculate a linear regression
- Calculate the residuals
- Calculate the correlation between the two variables
- Calculate the mean, median, and standard deviation of the number of people and cost of drinks
Problem Two:
You are a real estate agent and you are trying to predict home prices for your clients that want to list their house for sale. You have a very small city without much data. You will need to use the data that you have available for the past year on homes that have been sold.
|
Bedrooms
|
Square Footage
|
Bathrooms
|
Price
|
|
1
|
1500
|
2
|
125,000
|
|
3
|
1800
|
4
|
148,000
|
|
5
|
4000
|
5
|
250,000
|
|
3
|
2100
|
3
|
160,000
|
|
4
|
2300
|
5
|
240,000
|
|
5
|
3800
|
4
|
245,000
|
|
2
|
1900
|
1
|
155,000
|
Complete the calculations below using this data. Show all of your work and clearly label each of your calculations.
Conduct a multiple regression analysis to predict home prices. In your analysis complete the following:
- Calculate the multiple regression analysis and report your data.
- Determine the list price for your client's home if it has three bedrooms, three bathrooms, and 1900 square footage. Provide your analysis and show all of your calculations.