Question

The asking price of a used tractor is given for a sample size of five. Age in years are 10, 12, 15, 20, 33 with respective asking prices of $8,300 7,500 6,200 5,800 and 4,700 Estimate the 95% confidence interval for β1 The Least Squares Regression Line relating to price is Tractor Price = $9,051 - $142 X

• A. The slope +/- 260.26

• B. b0 +/- 35.42

• C. -142 +/- 112.7

• D. 9,051 +/- 112.67

• E. b1 +/- 35.42

Answer 1

Option C is correct

C. -142 +/- 112.7

Using excel<data<data analysis<regression

Regression Analysis
	r²	0.842
	r	-0.918
	Std. Error	651.103
	n	5
	k	1
	Dep. Var.	prices
ANOVA table
Source	SS	df	MS	F	p-value
Regression	67,88,195.2663	1	67,88,195.2663	16.01	.0280
Residual	12,71,804.7337	3	4,23,934.9112
Total	80,60,000.0000	4
Regression output				confidence interval
variables	coefficients	std. error	t (df=3)	p-value	95% lower
Intercept	9,050.8876	700.83	12.91	0.00	6820.53
Age	-141.7160	35.4153	-4.002	.0280	-254.4233