The table below gives the list price and the number of bids received for five ra

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, cap y = b_0 + b_1 x, 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. 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 cap y.

Explanation / Answer

The regression equation is

y=a+bx

where y is number of bids

x is Price in dollars

From Excel

The Fitted regression model is

y hat= -9.389 + 0.3778 (Price)

If we change one unit in independent variable then there is 0.3778 units increase in dependent varaible

SUMMARY OUTPUT Regression Statistics Multiple R 0.938951 R Square 0.881629 Adjusted R Square 0.842172 Standard Error 0.948484 Observations 5 ANOVA df SS MS F Significance F Regression 1 20.10114 20.10114 22.344 0.017941 Residual 3 2.698864 0.899621 Total 4 22.8 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept -9.3892 3.2412 -2.89683 0.062664 -19.7041 0.925741 -19.7041 0.925741 price 0.377841 0.079933 4.726944 0.017941 0.123457 0.632225 0.123457 0.632225

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