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Regression Analysis on Technological Advances

1) Technological advances helped make inflatable paddlecraft suitable for backcountry use. These blow-up rubber boats, which can be rolled into a bundle not much bigger than a golf bag, are large enough to accommodate one or two paddlers and their camping gear. Canoe & Kayak magazine tested boats from nine manufacturers to determine how they would perform on a three-day wilderness paddling trip. One of the criteria in their evaluation was the baggage capacity of the boat, evaluated using a 4-point rating scale from 1 (lowest rating) to 4 (highest rating). The following data show the baggage capacity rating and the price of the boat (Canoe & Kayak, March 2003).

2) Would you expect more reliable cars to cost more? Consumer Reports rated 15 upscale sedans. Reliability was rated on a 5-point scale: poor (1), fair (2), good (3), very good (4), and excellent (5). The price and reliability rating for each of the 15 cars are shown (Consumer Reports, February 2004).

3) An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation.

4) Outside Magazine tested 10 different models of day hikers and backpacking boots. The following data show the upper support and price for each model tested. Upper support was measured using a rating from 1 to 5, with a rating of 1 denoting average upper support and a rating of 5 denoting excellent upper support (Outside Magazine Buyer's Guide, 2001).


Solution Summary

The solution provides step by step method for the calculation of regression model . Formula for the calculation and Interpretations of the results are also included.