posted by Joan .
Hi, I'm not sure if I'm giving the correct answer for this problem. The question states; The values of computers in the years after its purchase date are listed in the following table. Year 0=1500, Year1=1200, Year2=1100,Year3 +1000, Year 4 = 800, Year 5 =400, Year 6= 200. Givent hat the equation of the regression line between value and year is y = -207.14x + 1507.14 with an R^2 value of 0.9622, how reliable do you think the regression equation is at predicting the future value of a computer in 5 years?
My answer: first I drew a scatter plot, then I got the correlation coefficient which is 0.981. I preidicted strong, negative correlation. I'm just concerned this isn't the correct procedure because the next question asks me to calculate the corrrelation coefficient between year and value which I already did for this question. Any help is greatly appreciated.
the actual value of y-the predicted value
400-471.44=-71.44 big difference between the actual value and predicted value of y therefore the regression equation is not very reliable.