Question

Consider the relationship between the number of bids an item on eBay received and the item's selling price. The following is a sample of 5 items sold through an auction. Price in Dollars 28 31 33 37 48 Number of Bids 1 4 7 8 8 Table Step 1 of 5: Calculate the sum of squared errors (SSE). Use the values b0=−4.9386 and b1=0.2977 for the calculations. Round your answer to three decimal places.

Step 2 of 5:

Calculate the estimated variance of errors, s2ese2. Round your answer to three decimal places.

Step 3 of 5:

Calculate the estimated variance of slope, s2b1sb12. Round your answer to three decimal place

Step 4 of 5:

Construct the 98%98% confidence interval for the slope. Round your answers to three decimal places.upper and lower

Step 5 of 5:

Construct the 95%95% confidence interval for the slope. Round your answers to three decimal places. upper and lower

Answer 1

The statistical software output for this problem is :

Step 1 : SSE = 15.827

Step 2 : S²e = 5.276

Step 3 : S²b = 0.022

Step 4 : The 98% confidence interval for the slope is :

(-0.374 , 0.969)

Step 5 : The 95% confidence interval for the slope is :

(-0.173 , 0.768)