The following data show U.S. production of motor vehicles versus tons of domestic steel shipped for motor vehicle manufacture.
Year X=U.S. Production of Motor Vehicles Y=Tons of Domestic Steel
2000 12.83 million 16.06 million
2001 11.52 14.06
2002 12.33 14.0
2003 12.15 15.88
2004 12.02 13.86
a. Determine the least-squares regression line and calculate r.
b. What proportion of the variability in steel shipments for motor vehicles is explained by the regression equation?
c. During a year in which U.S. production of motor vehicles is 12.0 million, what would be the prediction for the number of tons of domestic steel used for vehicle production?
The solution provides step by step method for the calculation of regression analysis. Formula for the calculation and Interpretations of the results are also included.