Question 1
Consider the data set shown below. Find the 95% confidence interval for the slope of the regression line.
◦ 0.94643 ± 0.36203
◦ 0.94643 ± 0.33306
◦ 0.94643 ± 0.28377
◦ 0.94643 ± 0.27603
Question 2
A large national bank charges local companies for using their services. A bank official reported the results of a regression analysis designed to predict the bank's charges (
y), measured in dollars per month, for services rendered to local companies. One independent variable used to predict service charge to a company is the company's sales revenue (
x), measured in $ million. Data for 21 companies who use the bank's services were used to fit the model
E(y) = β0 + β1x.
Suppose a 95% confidence interval for
β1 is (15, 25). Interpret the interval.
◦ We are 95% confident that service charge (
y) will decrease between $15 and $25 for every $1 million increase in sales revenue (
x).
◦ We are 95% confident that service charge (
y) will increase between $15 and $25 for every $1 million increase in sales revenue (
x).
◦ We are 95% confident that sales revenue (x) will increase between $15 and $25 million for every $1 increase in service charge (
y).
◦ We are 95% confident that the mean service charge will fall between $15 and $25 per month.
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One of the rats in the research reported on BioFoods.
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