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+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	20	23	26	28	48
Number of Bids	11	44	66	77	99

Table

Copy Data

Step 1 of 6:

Find the estimated slope. Round your answer to three decimal places.

Step 2 of 6:

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

Step 3 of 6:

According to the estimated linear model, if the value of the independent variable is increased by one unit, then the change in the dependent variable yˆ is given by?

Step 4 of 6:

Determine the value of the dependent variable yˆ at x=0.

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:

From above output:

1) Slope = 0.232

2) y - Inercept = -1.315

3) Change = b1 = 0.232

4) Value = b0 = -1.315

5) True

6) Coefficient of determination = 0.703