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 5 items sold through an auction. Price in Dollars 9 32 40 45 49 Number of Bids 23 78 9 Table Copy Data Step 2 of 5: Calculate the estimated variance of errors, s2. Round your answer to three decimal places. Answer(How to Enter) 2 Points Keypadables rev Next

Answer 1

Here we have data :

Price in Dollars	Number of bids
29	2
32	3
40	7
45	8
49	9

Here we use EXCEL for calculation :

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.987266635
R Square	0.974695408
Adjusted R Square	0.966260544
Standard Error	0.572077554
Observations	5
ANOVA
	df	SS	MS	F	Significance F
Regression	1	37.81818182	37.81818182	115.555556	0.001721541
Residual	3	0.981818182	0.327272727
Total	4	38.8

Estimated variance of errors, S²_e = MSE = 0.327