Question

Consider the relationship between the number of bids an item on eBay received and the item's selling price. The following is a sample of 55 items sold through an auction.

Price in Dollars	22	24	33	36	46
Number of Bids	4	7	7	9	10

Step 1 of 5:

Calculate the sum of squared errors (SSE). Use the values b0=0.5961 and b1=0.2113 for the calculations. Round your answer to three decimal places.

Step 2 of 5:

Calculate the estimated variance of errors, s2e. Round your answer to three decimal places.

Step 3 of 5:

Calculate the estimated variance of slope, s2b1. Round your answer to three decimal places.

Step 4 of 5:

Construct the 80% confidence interval for the slope. Round your answers to three decimal places.

...lower endpoint...upper endpoint

Step 5 of 5:

Construct the 98% confidence interval for the slope. Round your answers to three decimal places.

...lower endpoint...upper endpoint

Answer 1

The statistical software output for this problem is:

Hence,

Step - 1: SSE = 4.384

Step - 2: Estimated variance of errors = MSE = 1.461

Step - 3: estimated variance of slope, s2b1 = (0.062277834)² = 0.004

Step - 4: 80% confidence interval:

Lower endpoint = 0.109

Upper endpoint = 0.313

Step - 5: 98% confidence interval:

Lower endpoint = -0.072

Upper endpoint = 0.494