<p>Excel Project 1 </p><p>MAT 210</p><p>Ulrich Hoensch</p><p>(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.</p><p>(2) The data are attached below. I have gold and silver prices for all 251 trading days in 2010.</p><p>(3) The histogram for the silver prices is shown here. </p><p>The distribution is skewed to the right, so I need to use the five-number summary, which is:</p><p>MIN $15.14 Q1 $17.70 MED $18.42 Q3 $21.91 MAX $30.70</p><p>(4) The scatter plot looks like this:</p><p>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 .</p><p>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.</p>