Question

Assume you have noted the following prices for books and the number of pages that each book contains.

Book	Pages (x)	Price (y)
A	500	$7.00
B	700	7.50
C	750	9.00
D	590	6.50
E	540	7.50
F	650	7.00
G	480	4.50

Required:

a.	Perform an F test and determine if the price and the number of pages of the books are related. Let a = 0.01.
b.	Perform a t test and determine if the price and the number of pages of the books are related. Let a = 0.01.
c.	Develop a 90% confidence interval for estimating the average price of books that contain 800 pages.
d.	Develop a 90% confidence interval to estimate the price of a specific book that has 800 pages.

Answer 1

a.	Perform an F test and determine if the price and the number of pages of the books are related. Let a = 0.01. Ans: F-test statistic and corresponding P-value are  6.44 and 0.052 respectively. This p-value is greater than a=0.01. Hence, we can conclude that the price and the number of pages of the books are not related.
b.	Perform a t test and determine if the price and the number of pages of the books are related. Let a = 0.01. Ans: F-test statistic and corresponding P-value are  2.54 and 0.052 respectively. This p-value is greater than a=0.01. Hence, we can conclude that the price and the number of pages of the books are not related.
c.	Develop a 90% confidence interval for estimating the average price of books that contain 800 pages. Ans: The 90% confidence interval for estimating the average price of books that contain 800 pages is (8.967, 10.700).
d.	Develop a 90% confidence interval to estimate the price of a specific book that has 800 pages. Ans: 90% confidence interval to estimate the price of a specific book that has 800 pages is (8.967, 11.59).