Find and interpret the coefficient of correlation


Discuss the below:

City Distance(x) Price (y)
in miles in dollars

Boston 206 109
Chicago 802 124
Denver 1771 154
Kansas City 1198 144
Little Rock 1238 144
Los Angeles 2786 179
Minneapolis 1207 144
Nashville 892 144
Phoenix 2411 179
Portland 2885 179
Reno 2705 179
St. Louis 948 144
San Diego 2762 179
Seattle 2815 179

Consumer Debt Bank credit card debt has risen steadily over the years.

Q: The table gives debt per household in 1994 dollars.

Year (x) 1975 1980 1985 1990 1995
Debt (y) 270 650 1100 1800 3100

a. Plot the data. Does the graph show a linear pattern?

b. Find the equation of the least squares line and graph it on the same axes. Does the line appear to be a good fit?

c. Find and interpret the coefficient of correlation.

d. If this linear trend continues, when will household debt reach $3300?

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Basic Statistics: Find and interpret the coefficient of correlation
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