The Data in the Table Below Can Be Used to Explore

question 8

Essay

The data in the table below can be used to explore the association between the rate of television ownership and per capita gross domestic product for several countries. $$\begin{array} { | l | c | c | } \hline & \text { TVs per } 1000 & \begin{array} { c } \text { per capita } \\\text { GDP (USD) }\end{array} \\\hline \text { Algeria } & 105 & 5500 \\\hline \text { Australia } & 554 & 23,200 \\\hline \text { China } & 321 & 3,600 \\\hline \text { Dominican } & & \\\text { Republic } & 95 & 5,700 \\\hline \text { Hungary } & 435 & 11,200 \\\hline \text { Italy } & 528 & 22,100 \\\hline \text { Russia } & 410 & 7,700 \\\hline \text { Syria } & 70 & 3,100 \\\hline \text { United States } & 806 & 36,200 \\\hline\end{array}$$ a)Make a scatterplot showing the trend in television ownership versus per capita GDP.Describe what you see. b)Determine the correlation and comment on its significance.
c)Find the equation of the line of regression.Interpret the slope of the equation.
d)Use your model to predict the rate of TV ownership for India,which has a per capita GDP of $2,200.How much confidence do you have in this prediction? Explain.
e)Discuss the impact that the U.S.A.data exerts on the model.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level at a specific time.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale, holding other factors constant.

Equilibrium Price

The market price at which the supply of an item equals the quantity demanded.

Equilibrium Quantity

The volume of goods or services that are both presented and required at the price where supply meets demand in a market.