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.
col1 Price in Dollars 23 24 32 37 49
col2 Number of Bids 1 2 6 9 10
Step 2 of 6: Find the estimated y-intercept =-0.488
Step 3 of 6: Determine the value of the dependent variable yˆ at x=0 is = -0.488
Step 4 of 6: Determine if the statement "Not all points predicted by the linear model fall on the same line" is False
Step 5 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 =0.290
Step 6 of 6: Find the value of the coefficient of determination =0.928