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+b1xy^=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	100100	130130	132132	141141	151151
Number of Bids	1212	1313	1414	1818	1919 Table Copy Data Step 1 of 6: 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 yˆy^ at x=0x=0. Determine if the statement "Not all points predicted by the linear model fall on the same line" is true or false. Substitute the values you found in steps 1 and 2 into the equation for the regression line to find the estimated linear model. According to this model, if the value of the independent variable is increased by one unit, then find the change in the dependent variable yˆy^. 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:

Simple linear regression results: Dependent Variable: Bids Independent Variable: Price Bids = -3.0590648 + 0.1395953 Price Sample size: 5 R (correlation coefficient) = 0.85713139 R-sq = 0.73467422 Estimate of error standard deviation: 1.8524435 Parameter estimates: Parameter Estimate Std. Err. Intercept -3.0590648 6.3891353 Slope 0.1395953 0.04843424 Alternative DF T-Stat P-value 0 3-0.47879168 0.6648 0 3 2.8821614 0.0634

Hence,

Step - 1: Slope = 0.140

Step - 2: y - Intercept = -3.059

Step - 3: Value of dependent variable = bo = -3.059

Step - 4: False

Step - 5: Change in dependent variable = b1 = 0.140

Step - 6: Coefficient of determination = 0.735