Draw a scatter diagram with Distance as the independent variable and Fare as the dependent variable. Is the relationship direct or indirect?
Compute the correlation coefficient. At the .05 significance level, is it reasonable to conclude that the correlation coefficient is greater than zero?
What percentage of the variation in Fare is accounted for by Distance of a flight?
Determine the regression equation. How much does each additional mile add to the fare? Estimate the fare for a 1,500-mile flight.
A traveler is planning to fly from Atlanta to London Heathrow. The distance is 4,218 miles. She wants to use the regression equation to estimate the fare.
Explain why it would not be good idea to estimate the fare for this international flight with the regression equation.
Determine the regression equation used to forecast air fare based on distance travelled.
Determine and interpret the correlation coefficient and the coefficient of determination.
Forecast the air fare for a 2000 mile trip.
Write up a short essay analyzing the regression model.
Identify at least one additional variable that could be used to forecast air fare.