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 55 items sold through an auction.

Price in Dollars	102102	155155	159159	171171	172172
Number of Bids	1414	1515	1515	1818	1818

Table

Copy Data

Step 1 of 5:

Calculate the sum of squared errors (SSE). Use the values b0=8.3189b0=8.3189 and b1=0.0506b1=0.0506 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 places.

Step 4 of 5:

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

Step 5 of 5:

Construct the 90%90% confidence interval for the slope. Round your answers to three decimal places.

Answer 1

The statistical software output for this problem is :

Step 1 : SSE = 5.496

Step 2 : S²e = 1.832

Step 3 : S²b = 0.001

Step 4 : The 95% confidence interval for the slope is :

(-0.024 , 0.125)

Step 5 : The 90% confidence interval for the slope is :

(-0.005 , 0.106)