Porisma

Worked solution

Distinguish an income association from a causal claim

The monthly incomes of eight former classmates of 2T03 in CJC are tabulated against their Advanced Level Examination aggregates.

Aggregate xxMonthly income yy (dollars)
724400
553550
654000
453000
603800
503200
422850
623950

(i) Obtain a scatter diagram and calculate the linear correlation coefficient.

(ii) Comment on the claim: “The strong correlation between a person’s aggregate in his Advanced Level Examination and his subsequent monthly income shows that good results determine one’s income.”

(iii) Find the regression line of yy on xx.

CJC · Discussion · Question 2

(i) Plot all pairs and calculate r

Answer

r=0.997r=0.997 (3 s.f.).

Plot aggregate horizontally and monthly income vertically, preserving each classmate’s pair. The independently reconstructed scatter rises almost linearly. From xˉ=56.375\bar x=56.375, yˉ=3593.75\bar y=3593.75, Sxx=741.875S_{xx}=741.875, Syy=2047187.5S_{yy}=2047187.5 and Sxy=38868.75S_{xy}=38868.75, the coefficient is 0.9973702172…0.9973702172\ldots, agreeing with the printed 0.9970.997. The blue line is the fit calculated for part (iii), not additional source data.

How did this part go?

(ii) Evaluate the quoted conclusion

Answer

The strong sample correlation does not establish that examination results determine income.

The association among these eight former classmates does not isolate a causal effect of examination performance. Other factors such as later education, experience or occupation may affect income. These are possible explanations, not measured variables in the supplied table. The source asks for a comment but prints no explanation; this response is authored.

How did this part go?

(iii) Fit income on aggregate

Answer

y=52.4x+640y=52.4x+640 (3 s.f.).

The least-squares gradient and intercept are

b=38868.75741.875=52.3925863521…,b=\frac{38868.75}{741.875}=52.3925863521\ldots,

a=3593.75−b(56.375)=640.117944398….\begin{aligned}&a\\ & =3593.75-b(56.375)\\ & =640.117944398\ldots.\end{aligned}

Thus y=52.3925863521x+640.117944398y=52.3925863521x+640.117944398, reported as the printed y=52.4x+640y=52.4x+640. Use aggregate as explanatory and income as response for this requested direction. The intercept is part of the fitted model; it is not evidence about someone outside the observed aggregate range 42–72.

How did this part go?

Compare your sketch

Expand diagram

Use the scrollbars or arrow keys to inspect details.

All eight exact pairs [(72, 4400), (55, 3550), (65, 4000), (45, 3000), (60, 3800), (50, 3200), (42, 2850), (62, 3950)]. Aggregate x is horizontal, Income ($) vertical. Blue fitted line uses full coefficients 640.117944398+52.3925863521x.  Input axis is cropped; response axis starts at zero.
All eight exact pairs [(72, 4400), (55, 3550), (65, 4000), (45, 3000), (60, 3800), (50, 3200), (42, 2850), (62, 3950)]. Aggregate x is horizontal, Income ($) vertical. Blue fitted line uses full coefficients 640.117944398+52.3925863521x.  Input axis is cropped; response axis starts at zero.
All eight exact pairs [(72, 4400), (55, 3550), (65, 4000), (45, 3000), (60, 3800), (50, 3200), (42, 2850), (62, 3950)]. Aggregate x is horizontal, Income ($) vertical. Blue fitted line uses full coefficients 640.117944398+52.3925863521x. Input axis is cropped; response axis starts at zero.

Solution notes

All eight pairs and three asks retained. Key prints correlation and regression equation only; scatter, derivations and causal explanation are authored. No printed marks.