an economist wanted to determine whether or not the amount of phone bills and in
ID: 3219822 • Letter: A
Question
an economist wanted to determine whether or not the amount of phone bills and incomes of households are related. the following table gives information on the monthly incomes (in hundreds of dollars) and monthly telephone bills (in dollars) for a random sample of 10 households
a. find the regression line with income as an independent variable and the amount of the phone bill as a dependent variable.
b. estimate the amount of the monthly phone bill for a household with a montly income of $2500
Income 16 45 36 32 30 13 41 15 36 40 Phone Bill 35 78 102 56 75 26 130 42 59 85Explanation / Answer
(a) The regression line is Phone Bill = 2.3173 + 2.1869 * Income
(b) 2.3173 + 2.1869 * 25 = 56.99
Regression Analysis r² 0.641 n 10 r 0.800 k 1 Std. Error 20.313 Dep. Var. Phone Bill ANOVA table Source SS df MS F p-value Regression 5,884.5941 1 5,884.5941 14.26 .0054 Residual 3,301.0059 8 412.6257 Total 9,185.6000 9 Regression output confidence interval variables coefficients std. error t (df=8) p-value 95% lower 95% upper std. coeff. Intercept 2.3173 0.000 Income 2.1869 0.5791 3.776 .0054 0.8515 3.5223 0.800 Predicted values for: Phone Bill 95% Confidence Interval 95% Prediction Interval Income Predicted lower upper lower upper Leverage 25 56.991 40.516 73.465 7.336 106.646 0.124Related Questions
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