Question

prediction The number of initial public offerings of stock issued in a 10-year period and the total proceeds of these forings in millions) are shown in the table Construct and interpreta of issuesis 597 The equation of the regression = 31 17 7017 Issues, 418 467 700 479 492 383 65 70 171 153 Proceeds, y 18.534 29290036163106736092 35.29 21 239 11.054 30,973 27.007 Construct and interpreta 95% prediction interval for the proceeds when the number of issues is 597 Select the correct choke below and in the answer boxes to complete your choice Round to the nearest million dollars as needed Type your answer standard form where 3 12 million means 3 120 000 O A. We can be 95% confident that when there are 597 issues, the proceeds will be between 5 and 5 . B. There is a chance that the predicted proceeds given 597 is between and

Answer 1

	X	Y	X * Y	X2	Ŷ	Sxx =Σ (Xi - X̅ )2	Syy = Σ( Yi - Y̅ )2	Sxy = Σ (Xi - X̅ ) * (Yi - Y̅)
	418	18584	7768112	174724	31029.8052	6021.7600	100118035	-776458
	467	29298	13682166	218089	32570.4670	16027.5600	501406	89645
	700	43616	30531200	490000	39896.4710	129312.1600	225783681	5403386
	479	31067	14881093	229441	32947.7719	19209.9600	6136024.4100	343326.0600
	492	36092	17757264	242064	33356.5189	22982.5600	56281504.4100	1137318.3600
	383	35269	13508027	146689	29929.3325	1814.7600	44610376.81	284529.66
	65	21239	1380535	4225	19930.7519	75845.1600	54035730.8100	2024437.8600
	70	11854	829780	4900	20087.9623	73116.1600	280090348.8100	4525387.3600
	177	30973	5482221	31329	23452.2646	26699.5600	5679165.6100	-389398.5400
	153	27907	4269771	23409	22697.65471	35118.76	466352.41	127975.46
Total	3404	285899	110090169	1564870	285899	406148.4	773702624.9	12770149.4

X̅ = Σ (Xi / n ) = 3404/10 = 340.4
Y̅ = Σ (Yi / n ) = 285899/10 = 28589.9

Predictive Confidence Interval of
My X=597

$\hat{Y}$ = 17887.0169 + 31.4421 X
$\hat{Y}$ = 36658

1 se[yo] ta/2 x 1/[1+ - + n 20-0 SE


ta/2 = t 0.05/2
  = 2.306
X̅ = (Xi / n ) = 3404/10 = 340

se[0] =Ý
= 36658

36658 +2.306 x Unil (597) - 340),一 10 406148 4 × 46522789

95% Predictive confidence interval is (18985 <
My X=597
< 54331)

OA. We can be 95% confident that when there are 597 issues, the proceeds will be between S ands