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A study of external disk drives finds the data in the accompanying table. The le

ID: 3154967 • Letter: A

Question

A study of external disk drives finds the data in the accompanying table. The least squares line is Prince 24 68 + 0.094 Capacity(GB) with s_c= 10.22 and SE(b_1)= 0.0028, where the values are rounded to the number of decimal places shown. The assumptions and conditions for regression are met. Use this information to complete parts a a) Disk drives keep growing in capacity. Some tech experts now talk about Petabyte (PB - 1000 TB = 1,000,000 GB) drives. What does this model predict that a 1.1-PB drive will cost? The predicted price for a 1.1-PB drive is S 103,425".

Explanation / Answer

Predicted Price = $103357

B. Find a 95% prediction interval for the price of a 1.1-PB drive. Rounded to the nearest dollar as needed.    =( $95569, 111146)

Regression Analysis

0.996

n

7

r

0.998

k

1

Std. Error

10.221

Dep. Var.

price

ANOVA table

Source

SS

df

MS

F

p-value

Regression

121,255.5125

1  

121,255.5125

1160.70

4.10E-07

Residual

522.3394

5  

104.4679

Total

121,777.8519

6  

Regression output

confidence interval

variables

coefficients

std. error

   t (df=5)

p-value

95% lower

95% upper

Intercept

24.6819

5.0431

4.894

.0045

11.7181

37.6457

capacity

0.0939

0.0028

34.069

4.10E-07

0.0869

0.1010

Predicted values for: price

95% Confidence Interval

95% Prediction Interval

capacity

Predicted

lower

upper

lower

upper

Leverage

1,100,000

103,357.40475

95,569.04740

111,145.76211

95,569.00308

111,145.80642

87871.105

Regression Analysis

0.996

n

7

r

0.998

k

1

Std. Error

10.221

Dep. Var.

price

ANOVA table

Source

SS

df

MS

F

p-value

Regression

121,255.5125

1  

121,255.5125

1160.70

4.10E-07

Residual

522.3394

5  

104.4679

Total

121,777.8519

6  

Regression output

confidence interval

variables

coefficients

std. error

   t (df=5)

p-value

95% lower

95% upper

Intercept

24.6819

5.0431

4.894

.0045

11.7181

37.6457

capacity

0.0939

0.0028

34.069

4.10E-07

0.0869

0.1010

Predicted values for: price

95% Confidence Interval

95% Prediction Interval

capacity

Predicted

lower

upper

lower

upper

Leverage

1,100,000

103,357.40475

95,569.04740

111,145.76211

95,569.00308

111,145.80642

87871.105