Inferential Statistics and Analytics – Analysis with Correlation and Regression


According to the U.S. Geological Survey (USGS), the probability of a magnitude 6.7 or greater earthquake in the Greater Bay Area is 63%, about 2 out of 3, in the next 30 years. In April 2008, scientists and engineers released a new earthquake forecast for the State of California called the Uniform California Earthquake Rupture Forecast (UCERF).

As a junior analyst at the USGS, you are tasked to determine whether there is sufficient evidence to support the claim of a linear correlation between the magnitudes and depths from the earthquakes. Your deliverables will be a PowerPoint presentation you will create summarizing your findings and an excel document to show your work.

Concepts Being Studied

  • Correlation and regression
  • Creating scatterplots
  • Constructing and interpreting a Hypothesis Test for Correlation using r as the test statistic

You are given a spreadsheet (See attachment) that contains the following information:

  • Magnitude measured on the Richter scale
  • Depth in km

Using the spreadsheet, you will answer the problems below in a PowerPoint presentation.

What to Submit

The PowerPoint presentation should answer and explain the following questions based on the spreadsheet provided above.

  • Slide 1: Title slide
  • Slide 2: Introduce your scenario and data set including the variables provided.
  • Slide 3: Construct a scatterplot of the two variables provided in the spreadsheet. Include a description of what you see in the scatterplot.
  • Slide 4: Find the value of the linear correlation coefficient r and the critical value of r using α = 0.05. Include an explanation on how you found those values.
  • Slide 5: Determine whether there is sufficient evidence to support the claim of a linear correlation between the magnitudes and the depths from the earthquakes. Explain.
  • Slide 6: Find the regression equation. Let the predictor (x) variable be the magnitude. Identify the slope and the y-intercept within your regression equation.
  • Slide 7: Is the equation a good model? Explain. What would be the best predicted depth of an earthquake with a magnitude of 2.0? Include the correct units.
  • Slide 8: Conclude by recapping your ideas by summarizing the information presented in context of the scenario.

Along with your PowerPoint presentation, you should include your Excel document which shows all calculations.

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