Modeling Real World Data: Scatter Plots. Key Topics Bivariate Data: data that contains two variables Scatter Plot: a set of bivariate data graphed as.

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Presentation transcript:

Modeling Real World Data: Scatter Plots

Key Topics Bivariate Data: data that contains two variables Scatter Plot: a set of bivariate data graphed as ordered pairs in a coordinate plane

Constructing a Scatter Plot Construct a scatter plot at your desk using the above data Notice how the gap in the values is noted on the graph

Key Topics Line of fit: a line drawn that closely approximates the data Prediction equation: equation of the line of fit used to approximate the data

Key Topics Finding prediction equation is just finding the equation of the line of fit: pick two points, find the slope, then find the equation for the line (2,122) and (8,153), m = Equation for line: y – 122 = (x – 2)

Key Topics We can now use our prediction equation to estimate the median house prices in future years Equation for line: y – 122 = (x – 2) For example in the year 2004 we can say the median house value will be approximately $164,000 y – 122 = (14 – 2)