Regression line and correlation coefficient help

• Mar 21st 2012, 05:43 PM
hollymxox
Regression line and correlation coefficient help
 year Value (\$) 0 1,500 1 1,1200 2 1,100 3 1,00 4 800 5 400 6 200

b. given that the equation of the regression line between value and year is y= -207.14x + 1507.14 with an R^2 value of 0.9622, how reliable do you think the regression equation is at predicting the future value of a computer in 5 years time?

c. calculate the value of the correlation coefficient between year and value

d. estimate the value of the computer in year 7, using the regression equation
• Mar 21st 2012, 06:31 PM
pickslides
Re: Regression line and correlation coefficient help

year = 0 as it is lower than after a year on, do you think a computer can appreciate?

year = 1 is the comma in the correct place? Should it be 1,200?

year = 3, should this be 1,000?
• Mar 21st 2012, 06:37 PM
pickslides
Re: Regression line and correlation coefficient help
Quote:

Originally Posted by hollymxox
b. given that the equation of the regression line between value and year is y= -207.14x + 1507.14 with an R^2 value of 0.9622, how reliable do you think the regression equation is at predicting the future value of a computer in 5 years time?

Did you find any t-stats or p-values?

Quote:

Originally Posted by hollymxox
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c. calculate the value of the correlation coefficient between year and value

$r =\sqrt{0.9622}$

Quote:

Originally Posted by hollymxox
d. estimate the value of the computer in year 7, using the regression equation

substitute x=7 into the equation
• Mar 21st 2012, 06:47 PM
hollymxox
Re: Regression line and correlation coefficient help
Yes it is suppose to be going down past 0 and yes the numbers should be 1,200 and 1,000.

Is there any way can you show me the work or explain it a little better?
• Mar 21st 2012, 06:49 PM
hollymxox
Re: Regression line and correlation coefficient help
and I dont even know what t-stats or p-values are...