One student with a handspan of 23 cm grabbed 38 pretzels (this point is circled on the graph) The scatterplot displays the data the teacher collected along with the least-squares regression line. The teacher then measured their handspan in centimeters. In a statistics class, a teacher had the students complete an activity in which they grabbed as many bite-sized pretzels as they could with their dominant hand, without crushing them. Points decrease, and then curve up.īased on the scatterplot and residual plot, is a linear model appropriate for the growth of stock price?Ī linear model is appropriate because the regression line fits the scatterplot well.Ī linear model is not appropriate because the residual plot is centered about zero.Ī linear model is not appropriate because the residual plot shows a clear pattern.Ī linear model is not appropriate because the scatterplot shows a clear pattern Points increase exponentially.Ī graph titled residuals versus years since 1987 has Residual on the x-axis, and stock price (dollars) on the y-axis. The scatterplot shows the number of years since the initial stock offering in 1987 and the price of the stock.Ī graph titled stock prices versus years since 1987 has years since 1987 on the x-axis, and stock price (dollars) on the y-axis. Twenty-two years later, the price of a single share of stock has risen to over $110. Since then, the company has experienced rapid growth.
At that time, the price of one share of stock was $0.39.
A small technology company started offering shares of stock to investors in 1987.