[Steps Shown] Look at the data below for the income levels and prices paid for cars for ten people: Annual Income Level Amount Spent on Car 38,000 40,000
Question: Look at the data below for the income levels and prices paid for cars for ten people:
| Annual Income Level | Amount Spent on Car |
|
38,000
40,000 117,000 17,000 23,000 79,000 33,000 66,000 15,000 52,000 |
10,000
14,000 37,000 2,500 6,000 18,000 4,000 5,000 1,000 5,000 |
Answer the following questions:
- What kind of correlation do you expect to find between annual income and amount spent on car? Will it be positive or negative? Will it be a strong relationship? Base your answer on your personal guess as well as by looking through the data.
- What is the direction of causality in this relationship - i.e. does having a more expensive car make you earn more money, or does earning more money make you spend more on your car? In other words, define one of these variables as your dependent variable (Y) and one as your independent variable (X).
- What method do you think would be best for testing the relationship between your dependent and independent variable, ANOVA or regression? Explain your reasoning thoroughly with a discussion of both methods.
- Go to this calculation page and enter in your data in the X and Y columns (don't use commas, enter 8,000 as 8000). Then click on the button "Y=MX+B". Then click on the "graph" button. Write out your equation as calculated, along with your coefficients. Discuss the significance and interpretation of this result, and discuss your graph.
Deliverable: Word Document 
(See Solution) Divide your data in half your first 8 observations and
![[Solution] Take your data and arrange it](/images/solutions/MC-solution-library-40994.jpg "[Solution] Take your data and arrange it in the order you collected")
[Solution] Take your data and arrange it in the order you collected
![[See Solution] MM's. The candy company claims](/images/solutions/MC-solution-library-40995.jpg "[See Solution] MM's. The candy company claims that 10% of the MM's")
[See Solution] MM's. The candy company claims that 10% of the MM's
(All Steps) Bigger Bag. Suppose the class in Exercise 6 buys bigger
Solution: Too many green ones? In a really large bag of MM's,
Order of Operations - MathCracker.com