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, yˆ=b0+b1x, 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 Dollars 34 40 41 44 48 Number of Bids 1 2 3 4 5 Table Step 3 of 6 : Substitute the values you found in steps 1 and 2 into the equation for the regression line to find the estimated linear model. According to this model, if the value of the independent variable is increased by one unit, then find the change in the dependent variable yˆ.

Answer 1

The statistical software output for this problem is:

Hence,

Change in dependent variable for a unit change in independent variable = Slope = 0.299

Dependent variable is increased by 0.299