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# Linear Regression: Developing Equations

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The following data shows the retail price for 12 randomly selected laptop computers along with their
corresponding processor speeds.

computers speed price \$
1 2 2,689
2 1.6 1,229
3 1.6 1,419
4 1.8 2,589
5 2 2,849
6 1.2 1,349
7 2 2,929
8 1.6 1,849
9 2 2,819
10 1.6 2,669
11 1 1,249
12 1.4 1,159

a. Develop a linear equation that can be used to describe how the price depends on the
processor speed.
b. Based on your regression equation, is there one machine that seems particularly over- or
underpriced?
c. Compute the correlation coefficient between the two variables. At the .05 significance
level conduct a test of hypothesis to determine if the population correlation could be
greater than zero.
d. Draw a box plot reflecting how the price depends on the processor speed.