Question

Use technology to find the equation of the regression line in which the explanatory variable (or x variable) is the cost of a slice of pizza and the response variable (or y variable) is the corresponding cost of a subway fare.

Year 1960 1973 1986 1995 2002 2003

cost of pizza. 0.15 0.35 1 1.25 1.75 2

subway fare. 0.15 0.35 1 1.35 1.50 2

A) Simple linear regression analysis relating to x = Cost of a slice of pizza (dollars) to y = Subway fare. The linear regression equation we would use to predict the cost of a slice of pizza given the subway fare would be? y ˆ =

B) Estimate the cost of subway fare when a pizza slice costs of $1.50 using the regression equation.

C) What is the null and alternative hypothesis that you would use to determine if the subway fare had any correlation to the cost of a slice of pizza?

D) What is the p-value for this test

E) Assume that the significance level is .05. State your conclusion in the context of this problem. Be sure to supply the reason.

F) What is the r-squared value for this test? G) Interpret the R-squared value in context of this problem

Answer 1