Listed below is Consumer Price Index (CPI) and the cost of subway fare.
CPI------------- 30.2 , 48.3 , 112.3 , 162.2 , 191.9 , 197.8
Subway Fare---- 0.15 , 0.35 , 1.00 , 1.35 , 1.50 , 2.00
1) Determine the correlation coefficient of CPI and Subway Fare. What does this number mean?(If you use technology to find the answer, explain the process or write your codes in the space provided)
2) Assume we want to predict the cost of Subway Fare by CPI, find the best linear model that allows us to make this prediction. Explain the meaning of the slope. (clearly show your work)
3) Determine a 95% prediction interval estimate of the cost of Subway Fare when the CPI was 187.1.