(3) the Histogram for the Silver Prices Is Shown Here
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Excel Project 1
MAT 210
Ulrich Hoensch
(1) I want to explore the relationship between the gold price (in dollars per troy ounce) and the silver price (in dollars per troy ounce). I will be simply exploring the relationship between these two variables. I will collect my data from www.kitco.com for the year 2010, and use the London PM fix for gold, and the London fix for silver.
(2) The data are attached below. I have gold and silver prices for all 251 trading days in 2010.
(3) The histogram for the silver prices is shown here.
The distribution is skewed to the right, so I need to use the five-number summary, which is:
MIN $15.14 Q1 $17.70 MED $18.42 Q3 $21.91 MAX $30.70
(4) The scatter plot looks like this:
The value of the correlation coefficient is , the coefficient of determination is , and the linear model for predicting the silver price from the gold price is .
The linear model describes the dependence of the two variables fairly well since it explains 85% of the variation of the silver price in terms of the gold price. However, the curved shape of the scatter plot indicates that a non-linear model would be better.