Based on the scatter plot above, describe the relationship between the amount of cost damage and the distance from nearest fire station to the residential. Determine the regression line for the above...

1. Based on the scatter plot above, describe the relationship between the amount of cost damage and the distance from nearest fire station to the residential.

1. Determine the regression line for the above regression output.

1. Interpret the slope coefficient of distance to the nearest station affecting the amount of fire cost damage.

1. Compute the correlation coefficient and interpret its meaning.

1. Does the distance to the nearest fire station has significant influence on the cost damage amount? Conduct a test at 1% significance level. ]

1. Predict the fire cost damage generated if the distance from nearest fire station is 2.5 kilometers. Is this estimate reliable? Explain. []

Extracted text: (a) A fire safety inspector wants to investigate the amount of fire cost damage in major residential affected by the distance (in km) from nearest fire station. A sample of 8 recent fires is selected and the safety inspector developed a scatter plot and summary regression output concerning the amount of fire damage (in $). The scatterplot, output and data are released as below: Distance from Fire Cost Damage (RM) Station (kilometers) 3.4 26200 1.8 17800 4.6 31300 2.3 23100 3.1 27500 5.5 36000 0.7 14100 3.5 22300 40000 35000 30000 25000 20000 - 15000 10000 5000 - 2 3 Distance from Fire Station (kilometers) SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square 0.9119 0.8972 Standard Error 2265.4476 Observations 8 Cost Damage (RM)