The table below shows the numbers of new-vehicle sales (in thousands) for Compan

Question

The table below shows the numbers of new-vehicle sales (in thousands) for Company 1 and Company 2 for 11 years. Construct and interpret a 90% prediction interval for new-vehicle sales for Company 2 when the number of new vehicles sold by Company 1 is 2799 thousand. The equation of the regression line is y = 1.205x + 403.528 Company 1, x Company 2, y 4144 39633590 4933 4873 4826 3385 4710 3329 4659 3062 4403 2868 2485 4015 1956 2917 1651 |1933 20862209 3803 Construct and interpret a 90% prediction interval for new-vehicle sales for Company 2 when the number of new vehicles sold by Company 1 is 2799 thousand. Select the correct choice below and fill in the answer boxes to complete your choice (Round to the nearest cent as needed.) A We can be 90% confident that when the new vehicle sales for Company 1 is 2799 thousand, the new vehicle sales for Company 2 will be between and thousand B. There is a 90% chance that the predicted new vehicle sales for Company 2 is between and thousand, given that the new vehicle sales for Company 1 is 2799 thousand

Explanation / Answer

The statistical software output for this problem is:

Simple linear regression results:
Dependent Variable: y
Independent Variable: x
y = 403.52759 + 1.2048198 x
Sample size: 11
R (correlation coefficient) = 0.95052332
R-sq = 0.90349457
Estimate of error standard deviation: 350.69373

Parameter estimates:

Analysis of variance table for regression model:

Predicted values:

Hence,

Option A; 3103.49; 4448.15

Parameter Estimate Std. Err. Alternative DF T-Stat P-value Intercept 403.52759 400.41181 0 9 1.0077815 0.3399 Slope 1.2048198 0.13125441 0 9 9.1792704 <0.0001

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