Question

Bicycling World, a magazine devoted to cycling, reviews hundreds of bicycles throughout the year. Its "Road-Race" category contains reviews of bicycles used by riders primarily interested in racing. One of the most important factors in selecting a bicycle for racing is the weight of the bicycle. The following data show the weight (pounds) and price ($) for ten racing bicycles reviewed by the magazine

Model	Weight (lb)	Price ($)
Fierro 7B	17.9	2,200
HX 5000	16.2	6,350
Durbin Ultralight	15.0	8,470
Schmidt	16.0	6,300
WSilton Advanced	17.3	4,100
Bicyclette vélo	13.2	8,700
Supremo Team	16.3	6,100
XTC Racer	17.2	2,680
D'Onofrio Pro	17.7	3,500
Americana #6	14.2	8,100

Regression Model
Y = 28818.00 + -1439.01

The manufacturers of the D'Onofrio Pro plan to introduce the 13.6 lb D'Onofrio Elite bicycle later this year. Use the regression model you estimated in part (b) to predict the price of the D'Ononfrio Elite.

Answer 1

Answer

Given regression equation is

y= 28818 - 1439.01(weight)

setting weight = 13.6

we will get

y= 28818 -1439.01(13.6)

= 28818 - 19570.54

= 9247.46