Question: in a regional community fishermen have suffered financial hardship because...
In a regional community, fishermen have suffered financial hardship because of shortened fishing seasons, reduced catches and lower market prices. Fishermen have called for a system of minimum prices to be imposed by the local government. There is an assumption that the size of the catch had an immediate impact on prices, and this relationship should be clarified before potential solutions were discussed. To investigate this issue, a random 15-week period was selected to study the price. The collected data is given in the table below:
a) Identify and graphically show in a scatter plot the regression line that interprets the relationship between the average daily catch and the price per kilogram of fish.
b) Calculate the coefficient of determination and comment what it indicates regarding the relationship between the two variables.
c) Conduct an analysis on the data to see if you can conclude at the 5% significance level that there is sufficient statistical evidence large catches result in lower prices.
d) Find a 90% confidence interval estimate for the expected value of the price per kilogram if the daily catch is 73 000 kg.