Chapter 14, Problem 3CP

Consumer Reports tested 166 different point-and-shoot digital cameras. Based upon factors such as the number of megapixels, weight (oz.), image quality, and ease of use, they developed an overall score for each camera tested. The overall score ranges from 0 to 100, with higher scores indicating better overall test results. Selecting a camera with many options can be a difficult process, and price is certainly a key issue for most consumers. By spending more, will a consumer really get a superior camera? And, do cameras that have more megapixels, a factor often considered to be a good measure of picture quality, cost more than cameras with fewer megapixels? Table 14.13 shows the brand, average retail price ($), number of megapixels, weight (oz.), and the overall score for 13 Canon and 15 Nikon subcompact cameras tested by Consumer Reports (Consumer Reports website, February 7, 2012).

Managerial Report

1. 1. Develop numerical summaries of the data.
2. 2. Using overall score as the dependent variable, develop three scatter diagrams, one using price as the independent variable, one using the number of megapixels as the independent variable, and one using weight as the independent variable. Which of the three independent variables appears to be the best predictor of overall score?
3. 3. Using simple linear regression, develop an estimated regression equation that could be used to predict the overall score given the price of the camera. For this estimated regression equation, perform an analysis of the residuals and discuss your findings and conclusions.
4. 4. Analyze the data using only the observations for the Canon cameras. Discuss the appropriateness of using simple linear regression and make any recommendations regarding the prediction of overall score using just the price of the camera.

TABLE 14.13 DATA FOR 28 POINT-AND-SHOOT DIGITAL CAMERAS