Question

The following data is used to study the relationship between miles traveled and ticket price for...

The following data is used to study the relationship between miles traveled and ticket price for a commercial airline:

Distance in miles:        300      400      450      500      550      600      800      1000

Price charged in $:      140      220      230      250      255      288      350      480

SUMMARY OUTPUT

Regression Statistics

Multiple R

                  0.987

R Square

0.975

Adjusted R Square

0.971

Standard Error

17.352

Observations

8

ANOVA

df

SS

MS

F

Significance F

Regression

1

70291.3

70291.3

233.4

4.96363E-06

Residual

6

1806.6

301.1

Total

7

72097.9

Coefficients

Standard Error

t Stat

P-value

Intercept

22.547

17.725

1.272

0.250

Distance in miles:

0.442

0.029

15.279

4.96E-06

What is the slope of the least squares line?

22.547

0.975

0.442

17.352

About what percentage of the variation in Price Charged is explained by its regression on the distance in miles?

0.442

22.547

17.352

97.5

Based on the outcome of the hypothesis test for the slope of the regression line at the 5% significance level, we can conclude that:

a) There is sufficient evidence that Distance causes Price.

b) There is insufficient evidence that there is a relationship between Distance and Price.

c) There is sufficient evidence that the slope of the regression line is positive.

d) There is sufficient evidence that the slope of the regression line is not zero. This model is statistically significant.

Homework Answers

Answer #1

Q1) From the coefficients column, we can see here that the coefficient for the variable: Distance in Miles here is given as 0.442. Therefore the slope of the least square line here is given as: 0.442.

Q2) The coefficient of determination here is given as: R2 = 0.975

Therefore, 97.5% of the variation in the the dependent variable is explained by the variation in the independent variable that is explained by regression here.

Q3) From the coefficient table, we have the p-value for the slope coefficient here as: 4.96 x 10-6. As this p-value is very very low here, therefore the test is significant here. Therefore there is sufficient evidence that the slope of the regression line is not zero .Therefore d) is the correct answer here.

The model is significant here.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Regression Methods were used to analyze the data from a study investigates the relationship between roadway...
Regression Methods were used to analyze the data from a study investigates the relationship between roadway surface temperature (Xi) and Pavement deflection (Yi). Summary quantities were n= 20, Sum of Yi = ∑ Yi = 12.75, and ∑Yi² = 8.86, ∑Xi = 1478, ∑ Xi² = 143,215.8 and ∑ Xi Yi= 1083.67. a) Calculate the Least Square (χ²); b)estimates of slope and intercept set the line equation c)Explain graph-Line of the regression line slope (+) or (-) and (0) if...
A medical statistician wanted to examine the relationship between the amount of sunshine (x) in hours,...
A medical statistician wanted to examine the relationship between the amount of sunshine (x) in hours, and incidence of skin cancer (y). As an experiment he found thenumber of skin cancers detected per 100,000 of population and the average daily sunshine in eight counties around the country. these data are shown... Average dealy sunshine 5 7 6 7 8 6 4 3 Skin Cancer per 100,000 7 11 9 12 15 10 7 5 a) determine the least squares regression...
1) The sample study below shows the number of miles you can run and the effect...
1) The sample study below shows the number of miles you can run and the effect it has on reducing your blood pressure level. = 0.05 (5%) Miles Run Blood Pressure Level 2.5 80 3 78 3.5 74 4 66 4.5 64 5 62 5.5 60 1) A. Derive the equation for least square regression line. B. If you ran zero/no mile what would be your blood pressure? C.If you ran 6 miles what would be your blood pressure? D....
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Simple regression analysis The following data were collected to study the relationship between the sale price,...
Simple regression analysis The following data were collected to study the relationship between the sale price, y and the total appraised value, x, of a residential property located in an upscale neighborhood. Property x y x2 y2 xy 1 2 2 4 4 4 2 3 5 9 25 15 3 4 7 16 49 28 4 5 10 25 100 50 5 6 11 36 121 66 Draw a scatter diagram of the sale price and the total appraised...
Use Data Analysis in Excel to conduct the Regression Analysis to reproduce the excel out put...
Use Data Analysis in Excel to conduct the Regression Analysis to reproduce the excel out put below (Note: First enter the data in the next page in an Excel spreadsheet) Home Sale Price: The table below provides the Excel output of a regression analysis of the relationship between Home sale price(Y) measured in thousand dollars and Square feet area (x):    SUMMARY OUTPUT Dependent: Home Price ($1000) SUMMARY OUTPUT Dependent: Home Price ($1000) Regression Statistics Multiple R 0.691 R Square 0.478...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (X) and the amount of fire damage, in thousands of dollars (Y). The MegaStat output is reported below.   ANOVA table...