(Solution Library) Exercise 1.2 gives the age x_1, measured in years, as well as the selling price x_2, measured in thousands of dollars, for n=10 used
Question: Exercise 1.2 gives the age \(x_{1}\), measured in years, as well as the selling price \(x_{2}\), measured in thousands of dollars, for \(n=10\) used cars. These data are reproduced as follows:
| x1 | x2 |
| 1 | 18.95 |
| 2 | 19 |
| 3 | 17.95 |
| 3 | 15.54 |
| 4 | 14 |
| 5 | 12.95 |
| 6 | 8.94 |
| 8 | 7.49 |
| 9 | 6 |
| 11 | 3.99 |
- Use the results of Exercise 1.2 to calculate the squared statistical distances \(\left(\mathbf{x}_{j}-\overline{\mathbf{x}}\right)^{\prime} \mathbf{S}^{-1}\left(\mathbf{x}_{j}-\overline{\mathbf{x}}\right), \bar{j}=1,2, \ldots, 10\), where \(\mathbf{x}_{j}^{\prime}=\left[x_{j 1}, x_{j 2}\right]\)
- Using the distances in Part a, determine the proportion of the observations falling within the estimated \(50 \%\) probability contour of a bivariate normal distribution.
- Order the distances in Part a and construct a chi-square plot.
- Given the results in Parts \(\mathrm{b}\) and \(\mathrm{c}\), are these data approximately bivariate normal? Explain.
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Solution: The downloadable solution consists of 4 pages
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