For each of the following pairs of variables, discuss the strength and direction of the correlation (if any):
The average prices of an airline ticket on a particular route from the years 2001 to 2009 are shown in the table below:
Average airline ticket prices (2001 to 2009) | |||||||||
---|---|---|---|---|---|---|---|---|---|
Year | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 |
Price | \$280 | $180 | $270 | $260 | $240 | $190 | $230 | $220 | $190 |
Display this data in a scatterplot using a spreadsheet tool. Then fit a trendline to the data and display the equation of the line.
The next table includes the prices from 2010 to 2014:
Average airline ticket prices (2010 to 2014) | |||||
---|---|---|---|---|---|
Year | 2010 | 2011 | 2012 | 2013 | 2014 |
Price | \$180 | $170 | $160 | $155 | $150 |
Create a scatter plot to represent the relationship between two variables, determine the correlation between these variables by testing different regression models using technology, and use a model to make predictions when appropriate.