| City | \(A\) | \(B\) | \(C\) | \(D\) | \(E\) | \(F\) | \(G\) | \(H\) |
|---|---|---|---|---|---|---|---|---|
| Distance, \(d\text{ km}\) | \(124\) | \(44\) | \(76\) | \(148\) | \(16\) | \(180\) | \(104\) | \(195\) |
| Rail price, \(\$p\) | \(156\) | \(53\) | \(99\) | \(169\) | \(23\) | \(177\) | \(138\) | \(178\) |
Draw a scatter diagram of the data.
[2]For a line of best fit \(p = \mathrm{f}(d)\), the residual for a point \((a, b)\) plotted on the scatter diagram is the vertical distances between \((a, \mathrm{f}(a))\) and \((a, b)\). Explain why, in general, the sum of the squares of the residuals rather than the sum of the residuals is used.
[1]Using the scatter diagram in (i), explain if a linear relationship between the distance and the rail price is appropriate.
[1]Suppose that the relationship between \(d\) and \(p\) are modelled by an equation of the form \(p = s + t \ln d\), where \(s\) and \(t\) are constants. Find the equation of this regression line and use it to estimate the rail price for a city which is \(210\text{ km}\) from the capital.
[2]Comment on the reliability of the estimate in (iv).
[1]Following an adjustment to the rail prices, all rail prices are increased by \(10\) dollars. Without any further calculations, state any change you would expect in the values of the constants \(s\) and \(t\) found in (iv).
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