Classified ads in a newspaper offered for sale 15 used cars of the same make and model. The output of a regression analysis is given. Assume all conditions for regression have been satisfied. Create a 95% confidence interval for the slope of the regression line and explain what your interval means in context.
Coeff. SE t-Stat
y-Int. 12204 563.07 21.674
Age -1029 83.34 -12.347
Find the 95% confidence interval for the slope.
The confidence interval is (___,___) (Round to two decimal places as needed.)
What does the 95% confidence interval mean in context?
A. It can be said with 95% confidence that next year, the price of each used car will have changed by an amount contained in the interval.
B. It can be said with 95% confidence that the interval contains the true rate at which the price of a used car changes in relation to its age.
C. The true rate at which the price of a used car changes in relation to its age is between the endpoints of the confidence interval 95% of the time.
Here
estimated slope
= -1029
and standard error of slope
= 83.34
and sample size n = 15
a 95% confidence interval for the slope is
Interpretation :
B. It can be said with 95% confidence that the interval contains the true rate at which the price of a used car changes in relation to its age.
Classified ads in a newspaper offered for sale 15 used cars of the same make and...
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