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A B C D E F G 500 700 750 590 540 650 480 $7.00 7.50 9.00 6.50 7.50 7.00 4.50 Fi

ID: 3230404 • Letter: A

Question

A

B

C

D

E

F

G

500

700

750

590

540

650

480

$7.00

7.50

9.00

6.50

7.50

7.00

4.50

Find b0 and b1 for a least-squares estimated regression line for the above data:

The coefficient of determination is

The correlation coefficient between the price and the number of pages is

Perform a t test and determine if the price and the number of pages of the books are related. What is the value of the t-test:

Perform an F test and determine if the price and the number of pages of the books are related. What is the value of the F-test:

Find a 90% confidence interval for estimating the average price of books that contain 800 pages.

The standard error of b1 is

A

B

C

D

E

F

G

500

700

750

590

540

650

480

$7.00

7.50

9.00

6.50

7.50

7.00

4.50

Explanation / Answer

From Excel

a) The regression equation is

y=a+bx

from Excel

y=1.04+0.01(pages)

where b0=1.04 and slope b1=0.01

b)

The coefficient of determination is R2 =0.5629

56% of variation in y is explained by the regression model

c) The correlation coefficient between the price and the number of pages is 0.750

d)

H0: price and the number of pages of the books are not related

H1: price and the number of pages of the books are related

alpha:5%

Test statistic:

t=2.535

t critical value at 10% level with 5 df is =2.015

Conclusion:

t cal > t critical value we reject the H0.

Hence price and the number of pages of the books are related

SUMMARY OUTPUT Regression Statistics Multiple R 0.750271004 R Square 0.562906579 Adjusted R Square 0.475487895 Standard Error 0.980614871 Observations 7 ANOVA df SS MS F Significance F Regression 1 6.191972 6.191972 6.439202 0.052048 Residual 5 4.808028 0.961606 Total 6 11 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 1.041553442 2.377174 0.438148 0.679562 -5.06917 7.152274 -5.06917 7.152274 pages 0.009907156 0.003904 2.537558 0.052048 -0.00013 0.019943 -0.00013 0.019943
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