Question

Moondollars is a coffee franchise that has many coffee stores all over the world. MoonDollars coffee is investigating a linear regression model to predict the annual income for a store based on the population of the city where the store is located. In the proposed regression model, annual store income is the response variable and population of the city is the explanatory variable.

A random sample of 20 stores is selected and measurements are observed.

Population ('000s)	Annual income ('000s $)
450	254
3,300	2,861
2,870	1,944
1,160	905
1,140	681
1,930	1,102
1,250	655
2,970	1,198
2,950	1,133
1,170	101
670	904
2,670	2,232
580	808
660	603
2,950	1,647
930	1,605
2,210	1,546
1,890	1,026
3,130	2,007
740	1,956

a)Calculate the point prediction for the value x = 2,500. Give your answer as a whole number.

y^ = _________

b)Give the 95% prediction interval for the value x = 2,500. Give your answers as whole numbers.

________ ≤ y^ ≤ ________

Answer 1