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   Number of Bids
27   1
28   2
31   4
35   5
42   6

Summation Table

	x	y	xy	x2	y2
Sum	163	18	634	5463	82
Bid 1	27	1	27	729	11
Bid 2	28	2	56	784	44
Bid 3	31	4	124	961	16
Bid 4	35	5	175	1225	25
Bid 5	42	66	252	1764	36

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:

Substitute the values you found in steps 1 and 2 into the equation for the regression line to find the estimated linear model. According to this model, if the value of the independent variable is increased by one unit, then find the change in the dependent variable yˆy^.

Step 4 of 6:

Determine if the statement "Not all points predicted by the linear model fall on the same line" is true or false.

Step 5 of 6:

Determine the value of the dependent variable yˆy^ at x=0.

Step 6 of 6:

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

Answer 1

The statistical software output for this problem is:

Hence,

Step - 1: Slope = 0.316

Step - 2: y-intercept = -6.713

Step - 3: Change in dependent variable = b1 = 0.316

Step - 4: False

Step - 5: Value of dependent variable = -6.713

Step - 6: Coefficient of determination = 0.868