Question

A study in transportation safety collected data on 42 North American cities. From each city, two...

A study in transportation safety collected data on 42 North American cities. From each city, two of the variables recorded were explanatory variable x=percentage of licensed drivers who are under 21 years of age, and the response variable y=the number of fatal accidents per year per 1000 licenses. Of interest is the relationship between these two variables.

The data were analyzed in StatGraphics. Examine carefully the output below:

Regression Analysis - Linear model: Y = a + b*X

Parameter

Std. Estimate

Error

T Statistic

p-value

Intercept

-1.59741

0.371671

-4.29792

0.0001

Slope

0.287053

0.0293898

9.76711

0.0000

Correlation Coefficient = 0.839387

R-squared = 70.4571 percent

Standard error of estimate = 0.58935

Question 1 (3 points)
What is the correlation coefficient in this question, and what does it indicate about the relationship between the number of fatal accidents and the percentage of licensed drivers?

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Answer #1

From the given output,

Correlation coefficient = 0.839387

This correlation coefficient is very close to 1 which indicates that there is a strong positive association between number of fatal accidents and percentage of licensed drivers.

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