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+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	21	23	29	43	50
Number of Bids	1	2	4	5	7

Step 1 of 6:

Find the estimated slope. Round your answer to three decimal places.

Step 2 of 6:

Find the estimated y-intercept. Round your answer to three decimal places.

Step 3 of 6:

Determine the value of the dependent variable yˆ at x=0.

Step 4 of 6:

According to the estimated linear model, if the value of the independent variable is increased by one unit, then the change in the dependent variable yˆ is given by?

Step 5 of 6:

Determine if the statement "All points predicted by the linear model fall on the same line" is true or false.

Step 6 of 6:

Find the value of the coefficient of determination. Round your answer to three decimal places.

.

Answer 1

Following table shows the calculations:

	X	Y	X^2	Y^2	XY
	21	1	441	1	21
	23	2	529	4	46
	29	4	841	16	116
	43	5	1849	25	215
	50	7	2500	49	350
Total	166	19	6160	95	748

Step 1:

Step 2:

Step 3:

Step 4:

According to the estimated linear model, if the value of the independent variable is increased by one unit, then the change in the dependent variable yˆ is given by slope.

In this case slope is equal to 0.181.

Step 5:

Yes all the predicted points always lie in the straight line.

Answer: true

Step 6: