Question

An auctioneer of antique grandfather clocks knows that the price received for a clock at auction increases with the clock's age and with the number of bidders. The model proposed for predicting the price of a clock from its age and the number of bidders is: price = 0 + 1(age of clock) + 2(number of bidders), where the deviations were assumed to be independent and Normally distributed with mean 0 and standard deviation . This model was fit to a sample of 32 clocks selected from records of recent auctions. The following results summarize the least-squares regression fit of this model. ​ Source Sum of squares df Model 4,277,160 2 Error 514,034 29 ​ Variable Parameter estimate Standard error of parameter estimate Constant –1336.72 173.36 Age of clock 12.73 0.90 Number of bidders 85.82 8.71 ​ An approximate 99% confidence interval for (the coefficient of the variable number of bidders) is: Question 3 options: 85.82 ± 24.00. 85.82 ± 8.71. 12.73 ± 0.90. 12.73 ± 2.48

Answer 1