6.5141
b.
What is the
value of
the
t
test statistic (to 2 decimals)?
1.90
What is the
p
-value?
between .10 and .20
What is your conclusion ( = .
05)?
cannot conclude a
significant
relationship exists between x and y

c.
Use the
F
test to test for a significant relationship. Use = .05.
Compute the value of the
F
test statistic (to 2 decimals).
3.63
What is the
p
-value?
greater than .10
What is your conclusion?
cannot conclude a significant relationship exists between x and
y
9)
Consider the data set below.
Excel File:
data14-33.xls
The estimated regression equation is
= 30.33 - 1.88
x
.
a.
Estimate the standard deviation of
p
when
x
= 3 (to 3 decimals).
6.526
b.
Develop a 95% confidence interval for the expected value
of
y
when
x
= 3 (to 2 decimals).
( , )

(38.23 , 79.77)
c.
Estimate the standard deviation of an individual value
of
y
when
x
= 3 (to 2 decimals).
10.92
d.
Develop a 95% prediction interval for
y
when
x
= 3 (to 2
decimals).
( , )
(24.25 , 93.75)
10)
In exercise 12, the following data on
x
= average daily hotel room rate
and
y
= amount spent on entertainment (
The Wall Street Journal
,
August 18, 2011) lead to the estimated regression equation = 17.49 +
1.0334
x
. For these data SSE = 1541.4. Click on the webfile logo to
reference the data.
a.
Predict the amount spent on entertainment for a particular city
that has a daily room rate of $89 (to 2 decimals).
$
109.46

b.
Develop a 95% confidence interval for the mean amount spent on
entertainment for all cities that have a daily room rate of $89 (to 2
decimals).
$ to $
$94.84 to $124.08
c.
The average room rate in Chicago is $128. Develop a 95%
prediction interval for the amount spent on entertainment in Chicago
(to 2 decimals).
$ to $
$110.69 to $188.85

11)
Following is a portion of the regression output for an application
relating maintenance expense (dollars per month) to usage (hours per
week) for a particular brand of computer terminal.
Excel File:
data14-41.xls
If your answer is zero, enter "0".
a.
Write the estimated regression equation (to 4 decimals).
= + x
y= 6.1092 + 0.8951 x
b.
Use a
t
test to determine whether monthly maintenance expense is
related to usage at the .05 level of significance (to 2 decimals, if
necessary).

t
=
6.01
p
value=
0
Reject the null hypothesis
Monthly maintenance expense is related-
is related
b.
Did the estimated regression equation provide a good fit?
yes
Solution
12)
In 2011 home prices and mortgage rates dropped so low that in a
number of cities the monthly cost of owning a home was less
expensive than renting. The following data show the average asking
rent for 10 markets and the monthly mortgage on the median priced
home (including taxes and insurance) for 10 cities where the average
monthly mortgage payment was less than the average asking rent
(
The Wall Street Journal
, November 26–27, 2011). Click on the webfile
logo to reference the data.

Enter negative values as negative numbers.
a.
Develop the estimated regression equation that can be used to
predict the monthly mortgage given the average asking rent (to 2
decimals).

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- Fall '14
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