Question

Question Help 9.3.21 The number of initial public offerings of stock issued in a 10-year period and the total proceeds of these offerings (in millions) are shown in the table. Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 683. The equation of the regression line is y = 31.774x + 17,714.857 Issues, X 423 470 697 490 491 393 58 61 191 150 Proceeds, y 18,957 27,764 43,612 30,898 36,527 37,276 21.280 11,525 30,460 27,643 Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 683. Select the correct choice below and fill in the answer boxes to complete your choice. (Round to the nearest million dollars as needed. Type your answer in standard form where "3.12 million" means 3,120,000.) O A. We can be 95% confident that when there are 683 issues, the proceeds will be between $ and OB. There is a 95% chance that the predicted proceeds given 683 issues is between $ and

Answer 1

Statistics software output:

Predicted values: X value Pred. Y s.e.(Pred. y) 95% C.I. for mean 95% P.I. for new 683 39416.35 4318.2514 (29458.445, 49374.256) (20432.035, 58400.665)

Hence, Option A) between 20432000000, and 58401000000

Please comment if any doubt. Thank you.