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

Re: Regression line and correlation coefficient help

Please confirm the values for

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?

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** [COLOR=#333333]

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

$\displaystyle 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

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?

Re: Regression line and correlation coefficient help

and I dont even know what t-stats or p-values are...