STAT 200 Week 7 Homework Problems
10.1.2
Table #10.1.6 contains the value of the house and the amount of rental income in a year that
the house brings in ("Capital and rental," 2013). Create a scatter plot and find a regression
equation between house value and rental income. Then use the regression equation to find the
rental income a house worth $230,000 and for a house worth $400,000. Which rental income
that you calculated do you think is closer to the true rental income? Why?
Table #10.1.6: Data of House Value versus Rental
Value Rental Value Rental Value Rental Value Rental
81000 6656 77000 4576 75000 7280 67500 6864
95000 7904 94000 8736 90000 6240 85000 7072
121000 12064 115000 7904 110000 7072 104000 7904
135000 8320 130000 9776 126000 6240 125000 7904
145000 8320 140000 9568 140000 9152 135000 7488
165000 13312 165000 8528 155000 7488 148000 8320
178000 11856 174000 10400 170000 9568 170000 12688
200000 12272 200000 10608 194000 11232 190000 8320
214000 8528 208000 10400 200000 10400 200000 8320
240000 10192 240000 12064 240000 11648 225000 12480
289000 11648 270000 12896 262000 10192 244500 11232
325000 12480 310000 12480 303000 12272 300000 12480
House value vs. Rental Income
14000
13000
12000
11000
Rental Income
10000
9000
8000
7000
6000
5000
4000
55000 95000 135000 175000 215000 255000 295000 335000
House Value
Regression equation: Rental = 5363.865+0.024*Value (y=5363.865+0.024x)
House valued at $230000: y=5363.865+0.024(230000)= 10883.865
, House valued at $400000: y= 5363.865+0.024(230000)= 14963.865
Rental income for a house valued at $230000 is closer to the true rental income because these
values are within the original values (interpolating).
10.1.4
The World Bank collected data on the percentage of GDP that a country spends on health
expenditures ("Health expenditure," 2013) and also the percentage of women receiving
prenatal care ("Pregnant woman receiving," 2013). The data for the countries where this
information are available for the year 2011 is in table #10.1.8. Create a scatter plot of the data
and find a regression equation between percentage spent on health expenditure and the
percentage of women receiving prenatal care. Then use the regression equation to find the
percent of women receiving prenatal care for a country that spends 5.0% of GDP on health
expenditure and for a country that spends 12.0% of GDP. Which prenatal care percentage that
you calculated do you think is closer to the true percentage? Why?
Table #10.1.8: Data of Health Expenditure versus Prenatal Care
Health Prenatal
Expenditur Care (%)
e (% of
GDP)
9.6 47.9
3.7 54.6
5.2 93.7
5.2 84.7
10.0 100.0
4.7 42.5
4.8 96.4
6.0 77.1
5.4 58.3
4.8 95.4
4.1 78.0
6.0 93.3
9.5 93.3
6.8 93.7
6.1 89.8
10.1.2
Table #10.1.6 contains the value of the house and the amount of rental income in a year that
the house brings in ("Capital and rental," 2013). Create a scatter plot and find a regression
equation between house value and rental income. Then use the regression equation to find the
rental income a house worth $230,000 and for a house worth $400,000. Which rental income
that you calculated do you think is closer to the true rental income? Why?
Table #10.1.6: Data of House Value versus Rental
Value Rental Value Rental Value Rental Value Rental
81000 6656 77000 4576 75000 7280 67500 6864
95000 7904 94000 8736 90000 6240 85000 7072
121000 12064 115000 7904 110000 7072 104000 7904
135000 8320 130000 9776 126000 6240 125000 7904
145000 8320 140000 9568 140000 9152 135000 7488
165000 13312 165000 8528 155000 7488 148000 8320
178000 11856 174000 10400 170000 9568 170000 12688
200000 12272 200000 10608 194000 11232 190000 8320
214000 8528 208000 10400 200000 10400 200000 8320
240000 10192 240000 12064 240000 11648 225000 12480
289000 11648 270000 12896 262000 10192 244500 11232
325000 12480 310000 12480 303000 12272 300000 12480
House value vs. Rental Income
14000
13000
12000
11000
Rental Income
10000
9000
8000
7000
6000
5000
4000
55000 95000 135000 175000 215000 255000 295000 335000
House Value
Regression equation: Rental = 5363.865+0.024*Value (y=5363.865+0.024x)
House valued at $230000: y=5363.865+0.024(230000)= 10883.865
, House valued at $400000: y= 5363.865+0.024(230000)= 14963.865
Rental income for a house valued at $230000 is closer to the true rental income because these
values are within the original values (interpolating).
10.1.4
The World Bank collected data on the percentage of GDP that a country spends on health
expenditures ("Health expenditure," 2013) and also the percentage of women receiving
prenatal care ("Pregnant woman receiving," 2013). The data for the countries where this
information are available for the year 2011 is in table #10.1.8. Create a scatter plot of the data
and find a regression equation between percentage spent on health expenditure and the
percentage of women receiving prenatal care. Then use the regression equation to find the
percent of women receiving prenatal care for a country that spends 5.0% of GDP on health
expenditure and for a country that spends 12.0% of GDP. Which prenatal care percentage that
you calculated do you think is closer to the true percentage? Why?
Table #10.1.8: Data of Health Expenditure versus Prenatal Care
Health Prenatal
Expenditur Care (%)
e (% of
GDP)
9.6 47.9
3.7 54.6
5.2 93.7
5.2 84.7
10.0 100.0
4.7 42.5
4.8 96.4
6.0 77.1
5.4 58.3
4.8 95.4
4.1 78.0
6.0 93.3
9.5 93.3
6.8 93.7
6.1 89.8
