In: Statistics and Probability
Dorothy Kelly sells life insurance for the Prudence Insurance Company. She sells insurance by making visits to her clients homes. Dorothy believes that the number of sales should depend, to some degree, on the number of visits made. For the past several years, she kept careful records of the number of visits (x) she made each week and the number of people (y) who bought insurance that week. For a random sample of 15 such weeks, the x and y values follow.
x | 13 | 18 | 18 | 12 | 28 | 5 | 20 | 14 | 22 | 7 | 15 | 29 | 8 | 25 | 16 |
y | 4 | 13 | 8 | 6 | 8 | 2 | 5 | 6 | 8 | 3 | 5 | 10 | 6 | 10 | 7 |
In this setting we have Σx = 250, Σy = 101, Σx2 = 4910, Σy2 = 797, and Σxy = 1892.
What percentage of variation in y is explained by the least-squares model? (Round your answer to one decimal place.)
Find or estimate the P-value of the test statistic.
P-value > 0.2500.125 < P-value < 0.250 0.100 < P-value < 0.1250.075 < P-value < 0.1000.050 < P-value < 0.0750.025 < P-value < 0.0500.010 < P-value < 0.0250.005 < P-value < 0.0100.0005 < P-value < 0.005P-value < 0.0005
Conclusion
Reject the null hypothesis. There is sufficient evidence that ρ > 0.Reject the null hypothesis. There is insufficient evidence that ρ > 0. Fail to reject the null hypothesis. There is sufficient evidence that ρ > 0.Fail to reject the null hypothesis. There is insufficient evidence that ρ > 0.
(e) In a week during which Dorothy makes 23 visits, how many people
do you predict will buy insurance from her? (Round your answer to
one decimal place.)
people
(f) Find Se. (Round your answer to three
decimal places.)
Se =
(g) Find a 95% confidence interval for the number of sales Dorothy
would make in a week during which she made 23 visits. (Round your
answers to one decimal place.)
lower limit | sales |
upper limit | sales |
(h) Test the claim that the slope β of the population
least-squares line is positive at the 1% level of significance.
(Round your test statistic to three decimal places.)
t =
Find or estimate the P-value of the test statistic.
P-value > 0.2500.125 < P-value < 0.250 0.100 < P-value < 0.1250.075 < P-value < 0.1000.050 < P-value < 0.0750.025 < P-value < 0.0500.010 < P-value < 0.0250.005 < P-value < 0.0100.0005 < P-value < 0.005P-value < 0.0005
Conclusion
Reject the null hypothesis. There is sufficient evidence that β > 0.Reject the null hypothesis. There is insufficient evidence that β > 0. Fail to reject the null hypothesis. There is sufficient evidence that β > 0.Fail to reject the null hypothesis. There is insufficient evidence that β > 0.
(i) Find an 80% confidence interval for β and interpret
its meaning. (Round your answers to three decimal places.)
lower limit | |
upper limit |
Interpretation
For each additional visit made, sales increase by an amount that falls outside the confidence interval.For each less visit made, sales increase by an amount that falls outside the confidence interval. For each additional visit made, sales increase by an amount that falls within the confidence interval.For each less visit made, sales increase by an amount that falls within the confidence interval.
percentage of variation in y is explained by the least-squares model =r2*100 =50.1 %
test statistic t = | r*(√(n-2)/(1-r2))= | 3.612 |
0.0005 < P-value < 0.005
Reject the null hypothesis. There is sufficient evidence that ρ > 0
e)
predicted value = | 8.51 |
f)
Se =√(SSE/(n-2))= | 2.119 |
g)
std error of confidence interval = | s*√(1+1/n+(x0-x̅)2/Sxx)= | 2.2428 | |||||
for 95 % confidence and 13degree of freedom critical t= | 2.160 | ||||||
lower limit = | 3.7 | ||||||
uppr limit = | 13.4 |
h_)
test statistic t = | r*(√(n-2)/(1-r2))= | 3.612 |
0.0005 < P-value < 0.005
Reject the null hypothesis. There is sufficient evidence that β > 0
i)
std error of slope sb1 = | s/√SSx= | 0.0777 | ||||
for 80 % confidence and -2degree of freedom critical t= | 1.3500 | |||||
80% confidence interval =b1 -/+ t*standard error= | (0.176,0.386) | |||||
lower limit = | 0.176 | |||||
uppr limit = | 0.386 |
For each additional visit made, sales increase by an amount that falls within the confidence interval.