Question

The Mean Corporation has been commissioned to conduct a study is into the relationship between the population of a city and the number of motor vehicle accidents in the city per year. A linear regression model is to be constructed. In the proposed regression model, number of motor vehicle accidents per year is the response variable and population of the city is the explanatory variable.

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

Population ('000s)	No. accidents per year
3,480	7,117
1,670	4,344
2,280	5,576
1,310	4,356
1,530	5,115
2,540	5,692
1,630	4,348
1,090	3,092
1,660	4,166
980	3,912
1,560	3,355
2,210	5,471
3,490	7,419
1,650	4,756
3,190	7,050
2,020	5,209
2,810	6,451
3,140	6,919
1,830	3,889
420	2,273

a)Calculate the point prediction for the value x = 1,000. Give your answer as a whole number.

y^ =

b)Give the 95% prediction interval for the value x = 1,000. Give your answers as whole numbers.

≤ y^ ≤

Answer 1

The statistical software output for this problem is:

Hence,

a) Predicted value = 3377

b) 95% prediction interval:

2394 < y < 4361