| Exam Board | WJEC |
|---|---|
| Module | Further Unit 2 (Further Unit 2) |
| Year | 2024 |
| Session | June |
| Marks | 12 |
| Paper | Download PDF ↗ |
| Mark scheme | Download PDF ↗ |
| Topic | Linear regression |
| Type | Find unknown values from regression |
| Difficulty | Standard +0.8 This is a multi-step regression problem requiring students to work backwards from summary statistics to find missing values, involving understanding of how adding data points affects sums and regression calculations. While conceptually straightforward for Further Maths students familiar with regression formulas, it requires careful algebraic manipulation and understanding of how summary statistics change when data is added. More challenging than routine regression questions but not requiring novel insight. |
| Spec | 5.08a Pearson correlation: calculate pmcc5.09a Dependent/independent variables5.09b Least squares regression: concepts5.09c Calculate regression line |
| Country | Cash transactions as a \% of all transactions \(\boldsymbol { x }\) | Household debt as a \% of net disposable income \(\boldsymbol { y }\) | Country | Cash transactions as a \% of all transactions \(\boldsymbol { x }\) | Household debt as a \% of net disposable income \(\boldsymbol { y }\) |
| Malta | 92 | \(p\) | France | 68 | 120 |
| Mexico | 90 | -14 | Luxembourg | 64 | 177 |
| Greece | 88 | 107 | Belgium | 63 | 113 |
| Spain | 87 | 110 | Finland | 54 | 137 |
| Italy | 86 | 87 | Estonia | 48 | 82 |
| Austria | 85 | 91 | The Netherlands | 45 | 247 |
| Portugal | 81 | 131 | UK | 42 | 147 |
| Slovenia | 80 | 56 | Australia | 37 | 214 |
| Germany | 80 | 95 | USA | 32 | 109 |
| Ireland | 79 | 154 | Sweden | 20 | 187 |
| Slovakia | 78 | 74 | South Korea | 14 | 182 |
| Lithuania | 75 | 46 | Denmark | \(q\) | 261 |
| Latvia | 71 | 43 | |||
4. An author poses the following question:
Does using cash for transactions affect people's financial behaviour?\\
She collects data on 'Cash transactions as a \% of all transactions' and 'Household debt as a $\%$ of net disposable income' from a random sample of 25 countries. The table below shows the data she collected. There are missing values, $p$ and $q$, for Malta and Denmark respectively.
\begin{center}
\begin{tabular}{|l|l|l|l|l|l|}
\hline
Country & Cash transactions as a \% of all transactions $\boldsymbol { x }$ & Household debt as a \% of net disposable income $\boldsymbol { y }$ & Country & Cash transactions as a \% of all transactions $\boldsymbol { x }$ & Household debt as a \% of net disposable income $\boldsymbol { y }$ \\
\hline
Malta & 92 & $p$ & France & 68 & 120 \\
\hline
Mexico & 90 & -14 & Luxembourg & 64 & 177 \\
\hline
Greece & 88 & 107 & Belgium & 63 & 113 \\
\hline
Spain & 87 & 110 & Finland & 54 & 137 \\
\hline
Italy & 86 & 87 & Estonia & 48 & 82 \\
\hline
Austria & 85 & 91 & The Netherlands & 45 & 247 \\
\hline
Portugal & 81 & 131 & UK & 42 & 147 \\
\hline
Slovenia & 80 & 56 & Australia & 37 & 214 \\
\hline
Germany & 80 & 95 & USA & 32 & 109 \\
\hline
Ireland & 79 & 154 & Sweden & 20 & 187 \\
\hline
Slovakia & 78 & 74 & South Korea & 14 & 182 \\
\hline
Lithuania & 75 & 46 & Denmark & $q$ & 261 \\
\hline
Latvia & 71 & 43 & \multicolumn{3}{|c|}{} \\
\hline
\end{tabular}
\end{center}
The summary statistics and scatter diagram below are for the other 23 countries.
\begin{figure}[h]
\begin{center}
\captionsetup{labelformat=empty}
\caption{Household debt versus Cash transactions}
\includegraphics[alt={},max width=\textwidth]{1538fa56-5b61-40ec-bb02-cf1ed9da5eb0-13_664_1296_511_379}
\end{center}
\end{figure}
$$\begin{gathered}
\sum x = 1467 \sum y = 2695 \sum x ^ { 2 } = 105073 \quad S _ { x x } = 11503 \cdot 91304 \quad S _ { y y } = 78669 \cdot 30435 \\
\sum y ^ { 2 } = 394453 \sum x y = 152999 \quad S _ { x y } = - 18895 \cdot 13043
\end{gathered}$$
\begin{enumerate}[label=(\alph*)]
\item Using the summary statistics for the 23 countries, calculate and interpret Pearson's product moment correlation coefficient.
\item Calculate the equation of the least squares regression line of Household debt as a \% of net disposable income $( y )$ on Cash transactions as a \% of all transactions ( $x$ ).
The regression line $x$ on $y$ is given below.
$$x = - 0 \cdot 24 y + 91 \cdot 92$$
\item By selecting the appropriate regression line in each case, estimate the values of $p$ and $q$ in the table.
\item Comment on the reliability of your answers in part (c).
\item Interpret the negative value of $y$ for Mexico.
\end{enumerate}
\hfill \mbox{\textit{WJEC Further Unit 2 2024 Q4 [12]}}