The question to be answered here is whether there is a significant relationship

Question

The question to be answered here is whether there is a significant relationship between the number of contractors that bid on a contract the price that the lowest bidder that offers who is eventually offered the contract. Use a Regression equation to determine the Nature of the relationship between the dependent variable (Final Price) and the Independent Variable (The number of Bidders) Is this relationship Significantly Negative or Positive? How Strong is the Relationship? Specify and Write out the Final Equation of the Model Bidders-9.00,9.00,3.00,10.00,5.00,10.00,7.00,11.00,6.00,6.00,4.00,7.00,7.00,7.00,6.00 Price- 5.10,8.00,9.70,7.80,7.70,5.50,8.30,5.50,10.30,8.00,8.80,9.40,8.60,8.10,7.80

Explanation / Answer

x = number of bidders y = final price Linear Regression: y = ax + b a = - 0.467 b = 11.236 r^2 = 0.499 r = - 0.706 The r-squared "coefficient of determination" is very low. If a straight line were a good model, the r^2 would be close to 1. So the relationship btw y and x is weak. Since r = - 0.706, the relationship is negative. So as we suspect, when the number of bidders increased, the final price decreases. Best fit line: y = -0.467x + 11.236 Follow up question: interpret the meaning of the line. The -0.467 slope = -0.467/1 so the change in y is -0.467 for every change in x of 1. So for every increase of 1 bidder, the price decreases by 0.467. The y-intercept = 11. 236. A y-intercept for any graph occurs when x = 0. So if there were 0 bidders, the final price (according to the model) would be predicted to be 11.236. @markfrommath123 on twitr

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