The table below gives the list price and the number of bids received for five ra

Question

The table below gives the list price and the number of bids received for five randomly selected items sold through online auctions. Using this data, consider the equation of the regression line, y ˆ = b 0 + b 1 x, for predicting the number of bids an item will receive based on the list price. Keep in mind, the correlation coefficient may or may not be statistically significant for the data given. Remember, in practice, it would not be appropriate to use the regression line to make a prediction if the correlation coefficient is not statistically significant. Price in Dollar 20, 23, 26, 28, 48. Numbers in Bids 1, 4, 6, 7, 9. Step 1 of 6: Find the estimated slope. Round your answer to three decimal places. Step 2 of 6: Find the estimated y-intercept. Round your answer to three decimal places. Step 3 of 6: According to the estimated liner model, if the value of the independent variable is increased by the one unit, then then change in the dependent variable y is given by? Step 4 of 6: Determine the value of the dependent variable y at x = 0. Step 5 of 6: Determine if the statement "All points predicted by the linear model fall on the same line" is ture or false? Step 6 of 6: Find the value of the coefficient of determination. Round your answer to three decimal places.

Explanation / Answer

1. Step 1: Find XY and X2 as it was done in the table below.

Step 2: Find the sum of every column:

X=145 , Y=27 , XY=896 , X2=4693

Step 3: Use the following equations to find a and b:

a=YX2XXY/nX2(X)2=274693145896546931452

b1.315=nXYXY/nX2(X)2=58961452754693(145)20.232

Step 4: Substitute a and b in regression equation formula

y = a + bx= 1.315 + 0.232x

According to the estimated liner model, if the value of the independent variable is increased by the one unit, then then change in the dependent variable y is given by 0.232

for x=00y=-1.315

X Y XY XX 20 1 20 400 23 4 92 529 26 6 156 676 28 7 196 784 48. 9 432 2304

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