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STA101 Assignment 5 Solution

This document contains the solutions to Assignment 5 questions in STA101. It includes summaries of key findings from scatter plots analyzing the relationships between price and demand, and studying hours and marks obtained. It also shows the calculations and equations to determine the correlation coefficients and regression lines for both relationships.

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JUNAYED AHMED RAFIN
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© © All Rights Reserved
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23 views

STA101 Assignment 5 Solution

This document contains the solutions to Assignment 5 questions in STA101. It includes summaries of key findings from scatter plots analyzing the relationships between price and demand, and studying hours and marks obtained. It also shows the calculations and equations to determine the correlation coefficients and regression lines for both relationships.

Uploaded by

JUNAYED AHMED RAFIN
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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STA101 Assignment 5 Solutions

Answer to the question no. 1

a)
For the last digit ending in 0. X is (0 + 1) = 1

Price vs Demand Scatter Plot


12

10

8
Demand(Kg.)

0
0 10 20 30 40 50 60 70 80
Price(Tk.)

Fig. 1: Scatter Diagram

From the above scatter diagram, it can be seen that there is a strong negative linear
relationship between price and demand since the demand falls quite sharply as the price
increases.

STA101 – Spring 2022 – Assignment 5 Solutions


b)
For the last digit ending in 0. X is (0 + 1) = 1

Price(x) Demand(y) xy x2 y2

25 10 250 625 100

37 8 296 1369 64

40 9 360 1600 81

45 7.5 337.5 2025 56.25

48 5 240 2304 25

50 4.5 225 2500 20.25

55 3 165 3025 9

71 1 71 5041 1

Total 371 48 1944.5 18489 356.5

∑ 𝑥𝑦 − 𝑛 𝑥̅ 𝑦̅ 1944.5 − 8 × 46.375 × 6
𝒓= = = −𝟎. 𝟗𝟓
√(∑ 𝑥 2 − 𝑛 𝑥̅ 2 )(∑ 𝑦 2 − 𝑛𝑦̅ 2 ) √(18489 − 8 × 46.3752 )(356.5 − 8 × 62 )

Since, r is close to -1.0 there is a strong negative linear relation between price and
demand. That means both increase or decrease in the different direction.

STA101 – Spring 2022 – Assignment 5 Solutions


Last Digit X r
0 1 -0.95
1 2 -0.94
2 3 -0.93
3 4 -0.92
4 5 -0.91
5 6 -0.9
6 7 -0.89
7 8 -0.87
8 9 -0.86
9 10 -0.85

Answer to the question no. 2

Revenue(x) Trophies won(y) xy x2 y2


715.1 91 65074.1 511368.01 8281
714.9 91 65055.9 511082.01 8281
634.1 72 45655.2 402082.81 5184
580.4 71 41208.4 336864.16 5041
558.6 60 33516 312033.96 3600
549.2 36 19771.2 301620.64 1296
540.6 40 21624 292248.36 1600
469.7 30 14091 220618.09 900
445.7 17 7576.9 198648.49 289
397.9 64 25465.6 158324.41 4096
Total 5606.2 572 339038.3 3244890.94 38568

STA101 – Spring 2022 – Assignment 5 Solutions


a)
∑𝑥𝑦 − 𝑛𝑥̅ 𝑦̅ 339038.3 − 10 × 560.62 × 57.2
𝛽̂ = = = 0.18013
∑𝑥 2 − 𝑛𝑥̅ 2 3244890.94 − 10 × 560.622

Here, 𝛽̂ value indicates that, for every million increases in revenue there will be
about 0.18 increase in trophies won

𝛼̂ = 𝑦̅ − 𝛽̂ 𝑥̅ = 57.2 − 0.18013 × 560.62 = −43.7880

Here, 𝛼̂ value indicates that a club with zero revenue will win -43 trophies that is,
since the value is negative, the club will not win any trophies at all.

b) 𝑦̂ = −43.78805 + 0.18013 × 𝑥

c) For, x = €350.60m
𝑦̂ = −43.78805 + 0.18013 × 350.60 = 19.36

A club with €350.60m revenue will win about 19 trophies

For, x = €690.75m

𝑦̂ = −43.78805 + 0.18013 × 690.75 = 80.63

A club with €690.75m revenue will win about 81 trophies

STA101 – Spring 2022 – Assignment 5 Solutions


Answer to the question no. 3
a) For last digit ending in 0, X = 0 + 3 = 3

Using scatter diagram:

16
Styding Time in hours vs Marks obtained
14
12
10
Marks

8
6
4
2
0
0 2 4 Studying Time
6 in hours 8 10 12

Fig. 2: Scatter Diagram

Using correlation coefficient:

Studying Marks (y) xy x2 y2


Hours (x)
6 14 84 36 196
5 12 60 25 144
4 10 40 16 100
2 8 16 4 64
1 6 6 1 36
7 12 84 49 144
10 13 130 100 169
0 12 0 0 144
8 15 120 64 225
5 3 15 25 9
48 105 555 320 1231

STA101 – Spring 2022 – Assignment 5 Solutions


∑ 𝑥𝑦−𝑛 𝑥̅ 𝑦̅
𝒓= = 𝟎. 𝟒𝟖
√(∑ 𝑥 2 −𝑛𝑥̅ 2 )(∑ 𝑦 2 −𝑛𝑦̅ 2 )

Both from the scatter diagram and the correlation efficient we can say that, there is a
moderate amount of positive linear relationship between studying hours and marks
obtained. That means both increase or decrease in the same direction.

b)
∑𝑥𝑦 − 𝑛𝑥̅ 𝑦̅
𝛽̂ = = 0.569196429
∑𝑥 2 − 𝑛𝑥̅ 2

𝛼̂ = 𝑦̅ − 𝛽̂ 𝑥̅ = 7.767857143

̂ = 𝟕. 𝟕𝟔𝟕𝟖𝟓𝟕𝟏𝟒𝟑 + 𝟎. 𝟓𝟔𝟗𝟏𝟗𝟔𝟒𝟐𝟗 × 𝒙
𝑅𝑒𝑔𝑟𝑒𝑠𝑠𝑖𝑜𝑛 𝐸𝑞𝑢𝑎𝑡𝑖𝑜𝑛: 𝒚

c) For x = 3,
𝑦̂ = 7.767857143 + 0.569196429 × 3 = 𝟗. 𝟒𝟖
For x = 12
𝑦̂ = 7.767857143 + 0.569196429 × 12 = 𝟏𝟒. 𝟔

d) 𝒓𝟐 = 0.482 = 𝟎. 𝟐𝟑
We can say that only 23% of the variation in the marks obtained is explained by taking
into account the average number of studying hours per day.

That means, the fitted model does not provide a good fit to the data and is not capable
of explaining almost all variation in the dependent variable Marks (y).

STA101 – Spring 2022 – Assignment 5 Solutions


Last Digit X r beta alpha x=3 x=12 r2
0 3 0.48 0.57 7.77 9.48 14.598 0.23
1 4 0.51 0.57 7.86 9.57 14.714 0.26
2 5 0.54 0.57 7.95 9.67 14.83 0.29
3 6 0.57 0.58 8.04 9.76 14.946 0.32
4 7 0.6 0.58 8.13 9.86 15.063 0.36
5 8 0.63 0.58 8.21 9.96 15.179 0.4
6 9 0.65 0.58 8.3 10.1 15.295 0.43
7 10 0.67 0.58 8.39 10.1 15.411 0.45
8 11 0.68 0.59 8.48 10.2 15.527 0.47
9 12 0.68 0.59 8.57 10.3 15.643 0.47

STA101 – Spring 2022 – Assignment 5 Solutions

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