Question

INTERCEPT
Billed Charge	Visit Time (Minutes)
$           13,924.00	220
$             4,956.00	180
$             8,496.00	165
$           12,036.00	200
$             4,956.00	173
$           10,384.00	235
$           12,980.00	231
$           10,148.00	215
$             8,024.00	170
$           12,508.00	295
$           11,328.00	198
$             9,440.00	145
$           13,452.00	216
$           10,620.00	199
$           10,384.00	240
$             5,664.00	124
$             7,316.00	200
$           10,148.00	215
$             5,900.00	184
$             7,788.00	165
INTERCEPT
Now that you have determined the answer, it is time to provide a 1 or 2 sentence
write up of your answer. In statistics, it is important that you not only get the correct
mathematical answer, but that you become comfortable writing up your results in
a manner that is easily understood by the reader/audience.

Answer 1

Solution:

We can use the excel regression data analysis tool to find the intercept for the given data. The excel output is given below:

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.657849676
R Square	0.432766196
Adjusted R Square	0.401253206
Standard Error	2171.472165
Observations	20
ANOVA
	df	SS	MS	F	Significance F
Regression	1	64754844.28	64754844.28	13.73294656	0.001617631
Residual	18	84875244.52	4715291.362
Total	19	149630088.8
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	-124.9793602	2648.267097	-0.047192883	0.962879171	-5688.782063	5438.823342
Visit Time (Minutes)	48.60241491	13.11523219	3.705799044	0.001617631	21.04833459	76.15649524

Therefore, the intercept is:

The intercept means the expected billed charge is -$124.9794 when the visit time is 0 minutes. But the intercept does not have any practical meaning because the Billed charge can not be negative