CorrelationRegression Using the data from a survey of 25 dri

Correlation/Regression

Using the data from a survey of 25 drivers, the correlation coefficient between the ages of the driver (x) and the number of accidents in a 1-year period (y) is – 0.6476. The regression equation for the two variables is
y = – 0.0578x + 3.8205

a.    Is this a significant correlation?                                        YES       NO

b.    Predict the number of annual accidents that a 50-year-old person should expect.

Solution

a) for n=25, critical value of (plus/minus) 0.388 and given correlation is lower than -0.388, so this is significant.

b)y-hat = -0.0578 * 50 + 3.8205 = 0.9305