Question

E table below gives the list price and the number of bids received for five randomly selected items sold through online auctions. Using this data,

sider the equation of the regression line,ŷ = bo + bix, for predicting the number of bids an item will receive based on the list price. Keep in
nd, the correlation coefficient may or may not be statistically significant for the data given. Remember, in practice, it would not be appropriate to
the regression line to make a prediction if the correlation coefficient is not statistically significant.
Price in Dollars 24 28 35 44 50
Number of Bids 2 3 5 7 10

Answer 1

The regression equation for the given data is ŷ = -0.98 + 0.17x.

The correlation coefficient (r) is 0.94 and is statistically significant.

Step-by-step explanation:

To find the equation of the regression line for predicting the number of bids based on the list price, we need to calculate the regression coefficients.

The regression equation is given by ŷ = bo + bix, where bo is the y-intercept and bi is the slope.

We can calculate these coefficients using the least-squares method.

The least-squares line equation for this data is ŷ = -0.98 + 0.17x.

The correlation coefficient (r) for the data is 0.94, which is statistically significant.

a). For a person who lives eight miles from campus, the predicted total cost of supplies this term would be:

ŷ = -0.98 + 0.17(8)

= 0.48.

b). For a person who lives 80 miles from campus, the predicted total cost of supplies this term would be:

ŷ = -0.98 + 0.17(80)

= 12.22.