Solution:

Part 1
Numerical and Graphical Representation:

The required regression equation is,

Price = 1.59741 + 0.28705 Percent Under 21
Interpret the regression constant and regression coefficient.
The constant, b0 = 1.59741 is the estimate of the intercept; it indicated the average Fatal
Accidents per 1000 Licenses when Percent under 21 is 0.
The coefficient, b1 = 0.28705 is the estimate of the regression coefficient for the miles; it
indicated that the Fatal Accidents per 1000 Licenses is increased by 0.28705, when 1% increase
in the drivers under age 21.
Plug in any x value within the range of the data and solve the equation to get the forecast.
Forecast the Fatal Accidents per 1000 Licenses for which Percent under 21 is 12, i.e. x = 12.
Fatal Accidents per 1,000 Licenses= -1.59741+ 0.28705 (12) = 1.847

Part 2
Test the significant of the regression coefficient at an alpha level of .05.
H0: 1 = 0
Vs.
Ha: 1 0
The test statistic t (40) = 7.967, table t = 2.021, indicated that the regression between Percent
under 21 and Fatal Accidents per 1000 Licenses is significant.
Interpret the coefficient of determination.
The coefficient of determination R2 = 0.7046 indicates that 70.46% of total variation in the
variable Fatal Accidents per 1000 Licenses is explained by Percent Under 21.
The Normality assumption:

The Constant Variance and Linearity assumptions:

Part 3
The normal probability plot of residuals does not indicate any violation of normality assumptions
of residuals as all the points plotted are almost along a straight line.
The plots of residuals against the predictor and against predicted values do not indicate
any violation of constant variance and linearity assumptions of residuals as all the points plotted
are almost randomly distributed about the value 0.