Question

The table below gives the list price and the number of bids received for five randomly selected items sold through online auctions. Using this data, consider the equation of the regression line, yˆ=b0+b1xy^=b0+b1x, for predicting the number of bids an item will receive based on the list price. Keep in mind, the correlation coefficient may or may not be statistically significant for the data given. Remember, in practice, it would not be appropriate to use the regression line to make a prediction if the correlation coefficient is not statistically significant.

Price in Dollars	34	40	41	44	48
Number of Bids	11	22	33	44	55

Table

Copy Data

Step 3 of 6:

Substitute the values you found in steps 1 and 2 into the equation for the regression line to find the estimated linear model. According to this model, if the value of the independent variable is increased by one unit, then find the change in the dependent variable yˆy^.

Summation Table

	x	y	xy	x2	y2
Sum	207	15	653	8677	55
Bid 1	34	1	34	1156	1
Bid 2	40	2	80	1600	4
Bid 3	41	3	123	1681	9
Bid 4	44	4	176	1936	16
Bid 5	48	5	240	2304	25

Answer 1