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+b1xy^=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	28	29	35	36	50
Number of Bids	22	33	44	66	77

Summation Table

	x	y	xyxy	x2x2	y2y2
Sum	178178	2222	849849	66466646	114114
Bid 1	2828	22	5656	784784	44
Bid 2	2929	33	8787	841841	99
Bid 3	3535	44	140140	12251225	1616
Bid 4	3636	66	216216	12961296	3636
Bid 5	5050	77	350350	25002500	4949

Step 2 of 6:

Find the estimated y-intercept. Round your answer to three decimal places.

Step 3 of 6:

Determine the value of the dependent variable yˆy^ at x=0x=0.

Step 4 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 yˆy^.

Step 5 of 6:

Determine if the statement "All points predicted by the linear model fall on the same line" is true or false.

Step 6 of 6:

Find the value of the coefficient of determination. Round your answer to three decimal places.

Answer 1

The statistical software output for this problem is:

Hence,

Step - 2: y-intercept = -3.176

Step - 3: Value of dependent variable at x = 0 = b0 = -3.176

Step - 4: Change in dependent variable = b1

Step - 5: True

Step - 6: Coefficient of determination = 0.814