# Producing Scatterplot with Expenditure Using Minitab

Question

The Office for National Statistics also collects data on UK residents’ expenditure on their visits abroad. The Minitab worksheet expenditure.mtw contains data on the number of visits abroad by UK residents (in thousands) and the total expenditure on those visits (in £million) for each month between January 2013 and December 2016.

Run Minitab and open the worksheet expenditure.mtw. The first column, labelled Visits abroad, contains the number of visits made by UK residents abroad (in thousands); the second column, labelled Expenditure abroad, contains the total expenditure abroad on those visits (in £million). Each row in the worksheet corresponds to a month, starting with January 2013 and ending with December 2016.

(a) Using Minitab, produce a scatterplot with expenditure abroad on the y-axis and number of visits abroad on the x-axis. Include a copy of your plot in your answer.

(b) Now interpret the scatterplot that you produced in part (a), giving reasons for your answers and using the following checklist for interpreting scatterplots.
(i) Is the relationship positive, negative or neither?
(ii) Is the relationship linear or non-linear?
(iii) Is the relationship strong or weak?
(iv) Are there any outliers?

(c) Use Minitab to fit a least squares regression line to the data in expenditure.mtw, and include the relevant output in your answer. What is the equation of the least squares regression line in terms of x and y?

(d) Produce a residual plot using Minitab. Include a copy of your plot in your answer. Comment on what the residual plot tells you.

(e) You should use the equation of the least squares regression line (and hence your calculator rather than Minitab) to answer this part. Estimate the expenditure in a month when there were 5526 thousand visits abroad. Round your answer to the nearest million pounds. Given that the actual expenditure was £2901 million, calculate the residual.

(f)  The fit value of expenditure in a month when there are 0 visits abroad is - 385 . What, if anything, does this tell you about the usefulness of your model?

Summary

This question belongs to statistics and discusses using Minitab to produce a scatterplot with expenditure.

Word count: 1232

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