Shrimp from 1982 to 1990, There Was a Decrease in the Number

question 94

Essay

Shrimp From 1982 to 1990, there was a decrease in the number of white shrimp harvested
from the Galveston Bay. Here is the regression analysis and a residual plot. The year has
been shortened to two digits (82, 83…) and the dependent variable is the number of shrimp
collected per hour. Dependent Variable: Shrimp/hour
$\mathrm { R } - \mathrm { sq } = 0.9496342$
s: $6.0232354$

$\begin{array} { l r r } \text { Parameter } & \text { Estimate } & \text { Std. Err. } \\ \text { constant } & 816.71111 & 66.903419 \\ \text { year } & - 8.9333333 & 0.77759635 \end{array}$

a. Write the regression equation and define your variables.
b. Find the correlation coefficient and interpret it in context.
c. Interpret the value of the slope in context.
d. In 1991, the shrimp production rebounded (in part due to the effects of El Nino) to 81
shrimp/hour. Find the value of this residual.
e. The prediction for 1991 was very inaccurate. What name do statisticians give to this kind
of prediction error?

---

Definitions:

Equilibrium

A state in which market supply and demand balance each other, and, as a result, prices become stable.

Supply Curves

Graphical representations showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing to offer for sale.

Price Floors

A government- or authority-imposed minimum price that sellers must charge for a good or service, essentially preventing prices from falling below this set level.

Ceiling Prices

Maximum prices set by the government on certain goods and services to prevent excessive pricing during shortages or inflationary periods.