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+b1xy^=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	111111	117117	122122	179179	199199
Number of Bids	1111	1515	1616	1717	1818

Table

Copy Data

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^.

Answer 1

S.No X y 1 2 3 4 5 Total 111 117 122 179 199 728 11 15 16 17 18 (x-x) 1197.1600 817.9600 556.9600 1115.5600 2851.5600 6539.2000 SSX (y-7) 19.36 0.16 0.36 2.56 6.76 29.2000 SSY (x-x)(y-7) 152.2400 11.4400 -14.1600 53.4400 138.8400 341.8000 77 15.4000 Mean 145.600 SXY sample size na 5 X = 145.6000 y = 15.4000 2(X-X)2= S. 2(X-X)(Y-Y) slope B. 5./5.- intercepta B. = 7-B,X= Sa 6539.200 341.800 0.0523 Co 7.7896

slope =0.052

intercept =7.790

from above regression equation:

y^ =7.790+0.052x

Step 3 of 6:

According to this model, if the value of the independent variable is increased by one unit, then find the change in the dependent variable yˆ =b1 =0.052