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   Number of Bids
21 1
23 2
29 4
43 5
50 7

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

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

Determine the value of the dependent variable y^ at x=0

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 y^ is given by?

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

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

Answer 1

(1)  

(2)

(3) Determine the value of the dependent variable y^ at x=0

Ans : -2.197

(4) 0.181 (slope value)

(5)

The predicted value of 21 is -2.197+(0.181*21) = 1.604 which is not equal to 1=y=actual value.

Ans : TRUE

(6) Coeff of det = r^2 = 0.964^2 = 0.929296