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Linear Regression Analysis of Airfares

The document discusses a linear regression analysis of airfare based on distance to various destinations. It includes the creation of a scatterplot, calculation of the least squares regression (LSR) line, predictions for specific distances, and evaluation of residuals and errors. Additionally, it interprets the slope of the regression line and the coefficient of determination, indicating that 63.2% of the variability in airfare can be explained by the distance.

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45 views2 pages

Linear Regression Analysis of Airfares

The document discusses a linear regression analysis of airfare based on distance to various destinations. It includes the creation of a scatterplot, calculation of the least squares regression (LSR) line, predictions for specific distances, and evaluation of residuals and errors. Additionally, it interprets the slope of the regression line and the coefficient of determination, indicating that 63.2% of the variability in airfare can be explained by the distance.

Uploaded by

brandybo40
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Worksheet 4.

2A‐ Linear Regression Intro (AIRFARES)


NEED: group AIRFARES (lists DIST and AIRF)
The lists DIST and AIRF contain the following data:
Destination Distance Airfare Destination Distance Airfare
Atlanta 576 178 Miami 946 198
Boston 370 138 New Orleans 998 188
Chicago 612 94 New York 189 98
Dallas 1216 278 Orlando 787 179
Detroit 409 158 Pittsburgh 210 138
Denver 1502 258 St. Louis 737 98

1) Create a scatterplot of distance (exp.) vs. airfare (resp.) and draw it below (be accurate in
your drawing‐ label the axes). Describe the form, direction and strength. Do there appear to
be any outliers?

2) Find the equation of the LSR line using the calculator. Also, find r.
y = 0.117x + 83.267
r = 0.795

3) What airfare does the LSR line predict for a destination that is 370 miles away? (since
370miles is a distance, where would it go in your LSR line? What are you solving for?)
y = 0.117(370) + 83.267
y = $126.557

4) What about for 1502 miles?


y = 0.117(1502) + 83.267
y = $259.001

5) Calculate the residual for each of these last two estimates (residual=actual value – predicted
value). You will find the actual value in the chart of the data above.
e = 138 – 126.557 e = 258 – 259.001
e = $11.443 e = ‐$1.001
6) What airfare would the regression line predict for a flight to San Francisco, which is 2842
miles from Baltimore? Would you take this prediction as seriously as the ones above? Why
or why not?
y = 0.117(2842) + 83.267 Extrapolation: making predictions on data outside the data
y = $415.781 range. Cannot be trusted especially far outside the
data range.

7) The actual airfare for SF at that time was $198. Give the error for your prediction to SF.
e = 198 – 415.781
e = ‐$217.781

8) Use the equation of the regression line to predict the airfare if the distance is 900 miles.
Record the prediction below, and fill in the rest of the table.

miles 900 901 902 903 904

airfare 188.567 188.684 188.801 188.918 189.035

9) Do you notice a pattern in these predictions? By how many dollars is each prediction higher
than the preceding one? Does this number look familiar (form your earlier calculations)?
Explain.
The airfare increases $0.117 for every mile. It’s the slope!

10) This shows how we can interpret the slope of the LSR line. Interpret the slope in context of
the problem.
For every increase of 1 mile in distance there tends to be an increase of 0.117 dollars in
airfare.

11) By how much does the regression line predict airfare to rise for each additional 100 miles
that a destination is farther away?
$11.70

12) What is the coefficient of determination? Interpret this number


R2 = 63.2%

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