Question

Consider the relationship between the number of bids an item on eBay received and the item's selling price. The following is a sample of 5 5 items sold through an auction.

Price in Dollars 22 29 36 44 49

Number of Bids 1 4 5 7 8

Step 1 of 5: Calculate the sum of squared errors (SSE). Use the values b0=−3.8884 and b1=0.2469 for the calculations. Round your answer to three decimal places.

Step 2 of 5:

Calculate the estimated variance of errors, s2ese2. Round your answer to three decimal places.

Step 3 of 5:

Calculate the estimated variance of slope, s2b1sb12. Round your answer to three decimal places.

Step 4 of 5:

Construct the 80% confidence interval for the slope. Round your answers to three decimal places.

Step 5 of 5:

Construct the 98% confidence interval for the slope. Round your answers to three decimal places.

Answer 1

Step 1 of 5: Calculate the sum of squared errors (SSE) =0.870

Step 2 of 5: Calculate the estimated variance of errors =0.290

Step 3 of 5: Calculate the estimated variance of slope =0.025

Step 4 of 5: Construct the 80% confidence interval for the slope =0.207 ; 0.287

Step 5 of 5: Construct the 98% confidence interval for the slope =0.135 ; 0.359