Question

Problem 4 (20pts) For the data set in problem 2 construct 95% confidence intervals for include zero, if no explain what does this mean? and explain the results. Does the interval

Problem 2:

Answer 1

problem 2:

(x-x)(y-y 12.9856 -17.0496 0.8096 21.1016 9.9456 -61.892 SXY (x-x) 16.4674 12.6167 1.0241 16.4674 12.6167 59.192 (y-y) 10.2400 23.0400 0.6400 27.0400 7.8400 68.800 S.No 1 2 47 39 43 49 41 219 43.8000 17.76 25.37 22.83 17.76 25.37 109.09 21.8180 4 Total SSY Mean SSX sample size: here 43.8000 21.8180 from above 59.1923 Σ(X-X)(Y-Y)= 61.8920 slope- 1.04561 y-B1た intercept- 66.61310 hence line equation 66.613 1.046 x

from above:

intercept: β̂0           tells us that for price of 0 ; expected demand is 66.613 which is meaningless as price can not be 0.

slope β̂1 tells us that for 1 unit increase in price ; expected demand to decrease by 1.046.

problem 4:

4.0851 S -SSE/(n-2) error variance σ std error σ 1.362 1.1669 0.1517 estimated standard error of slope se(A)- for 95 % CI value of t margin of error E-t std error lower confidence bound-estimated slope-margin of error Upper confidence bound-estimated slope+margin of error- 3.182 0.483 -1.528 0.563

from above 95% CI for slope =-1.528 , -0.563