Understand how regression analysis can be used to develop an equation that estimates
mathematically how two variables are related.
2.
Understand the differences between the regression model, the regression equation, and the estimated
regression equation.
3.
Know how to fit an estimated regression equation to a set of sample data based upon the leastsquares method.
4.
Be able to determine how good a fit is provided by the estimated regression equation and compute
the sample correlation coefficient from the regression analysis output.
5.
Understand the assumptions necessary for statistical inference and be able to test for a significant
relationship.
6.
Know how to develop confidence interval estimates of y given a specific value of x in both the case
of a mean value of y and an individual value of y.
7.
Learn how to use a residual plot to make a judgement as to the validity of the regression
assumptions, recognize outliers, and identify influential observations.
8.
14  1
Chapter 14
Solutions:
a.
16
14
12
10
y
8
6
4
2
0
0
b.
c.
Many different straight lines can be drawn to provide a linear approximation of the
relationship between x and y; in part d we will determine the equation of a straight line that
best represents the relationship according to the least squares criterion.
d.
yi = 40
( xi x )( yi y ) = 26
( xi x )( yi y ) 26
=
= 2.6
( xi x ) 2
10
b0 = y b1 x = 8 (2.6)(3) = 0.2
y = 0.2 + 2.6 x
e.
14  2
( xi x )2 = 10
2.
15
10
5
0
0
10
b.
c.
Many different straight lines can be drawn to provide a linear approximation of the
relationship between x and y; in part d we will determine the equation of a straight line that
best represents the relationship according to the least squares criterion.
d.
yi = 116
( xi x )( yi y ) = 57.8
( xi x )( yi y ) 57.8
=
= 1.8766
( xi x ) 2
30.8
b0 = y b1 x = 23.2 ( 18766
.
)(38
. ) = 30.3311
y = 30.33 188
. x
e.
y = 30.33 188
. (6) = 19.05
14  3
( xi x ) 2 = 30.8
Chapter 14
3.
a.
7
6
5
4
3
2
1
0
0
b.
yi = 17
( xi x )( yi y ) = 11.6
( xi x )( yi y ) 11.6
=
= 0.5088
( xi x ) 2
22.8
c.
14  4
( xi x ) 2 = 22.8
10
120
115
110
105
100
61
62
63
64
65
66
67
68
69
b.
c.
Many different straight lines can be drawn to provide a linear approximation of the
relationship between x and y; in part d we will determine the equation of a straight line that
best represents the relationship according to the least squares criterion.
d.
yi = 585
( xi x )( yi y ) = 110
( xi x )( yi y ) 110
=
= 5.5
( xi x ) 2
20
e.
y = 240.5 + 55
. x = 240.5 + 55
. (63) = 106 pounds
14  5
( xi x ) 2 = 20
There appe
Chapter 14
a.
2500
2000
Price ($)
5.
1500
1000
500
0
1
1.5
2.5
3.5
4.5
Baggage Capacity
b.
c.
Many different straight lines can be drawn to provide a linear approximation of the
relationship between x and y; in part (d) we will determine the equation of a straight line
that best represents the relationship according to the least squares criterion.
d.
yi = 11,110
( xi x )( yi y ) = 2909.8889
( xi x ) 2 = 4.5556
( xi x )( yi y ) 2909.9889
=
= 638.7561
( xi x ) 2
4.5556
e.
A one point increase in the baggage capacity rating will increase the price by approximately $639.
f.
14  6
6.
15
10
5
0
50.00
70.00
90.00
110.00
130.00
150.00
170.00
190.00
Salary
b.
c.
yi = 160
( xi x )( yi y ) = 1114
( xi x ) 2 = 6046
( xi x )( yi y ) 1114
=
= .18425
( xi x ) 2
6046
b0 = y b1 x = 16 (.18425)(142) = 10.16
y = 10.16 + .18 x
d.
14  7
Chapter 14
a.
1550
1500
1450
S&P
7.
1400
1350
1300
9600
9800
10000
10200
10400
10600
10800
11000
11200
DJIA
b.
Let x = DJIA and y = S&P. Summations needed to compute the slope and yintercept are:
xi = 104,850
b1 =
yi = 14, 233
( xi x )( yi y ) = 268,921
( xi x ) 2 = 1,806,384
( xi x )( yi y )
268,921
=
= 0.14887
( xi x ) 2
1,806,384
c.
14  8
8.
1000
800
600
400
200
0
0
Sidetrack Capability
b.
There appears to be a linear relationship between x = sidetrack capability and y = price, with higher
priced models having a higher level of handling.
c.
yi = 10, 621
( xi x )( yi y ) = 4003.2
( xi x )( yi y ) 4003.2
=
= 204.2449
( xi x ) 2
19.6
d.
14  9
( xi x ) 2 = 19.6
Chapter 14
a.
150
140
130
120
110
y
9.
100
90
80
70
60
50
0
b.
10
yi = 1080
( xi x )( yi y ) = 568
( xi x )( yi y ) 568
=
=4
( xi x ) 2
142
b0 = y b1 x = 108 (4)(7) = 80
y = 80 + 4 x
c.
y = 80 + 4 x = 80 + 4(9) = 116
14  10
( xi x ) 2 = 142
12
14
Overall Rating
90
85
80
75
70
65
60
100
150
200
250
Performance Score
b.
Let x = performance score and y = overall rating. Summations needed to compute the slope and yintercept are:
xi = 2752
b1 =
yi = 1177
( xi x )( yi y ) = 1723.73
( xi x )( yi y )
1723.73
=
= 0.1452
2
( xi x )
11,867.73
c.
14  11
( xi x ) 2 = 11,867.73
Chapter 14
11. a.
35
Departures (%)
30
25
20
15
10
5
0
10
15
20
25
30
35
Arrivals (%)
b.
c.
yi = 265
( xi x )( yi y ) = 101
( xi x ) 2 = 114.4
( xi x )( yi y )
101
=
= .8829
( xi x ) 2
114.4
b0 = y b1 x = 21 (.8829)(21.4) = 2.106
y = 2.106 + .883 x
d.
A one percent increase in the percentage of late arrivals will increase the percentage of late arrivals
by .88 or slightly less than one percent.
e.
14  12
40000
35000
Revenue
30000
25000
20000
15000
10000
5000
0
0
20000
40000
60000
80000
100000
Number of Employees
b.
There appears to be a positive linear relationship between the number of employees and the revenue.
c.
Let x = number of employees and y = revenue. Summations needed to compute the slope and yintercept are:
xi = 4200
b1 =
yi = 1669
( xi x )( yi y ) = 4, 658,594,168
( xi x )( yi y ) 4, 658,594,168
=
= 0.316516
( xi x ) 2
14, 718,343,803
d.
14  13
( xi x ) 2 = 14, 718,343,803
Chapter 14
13. a.
30.0
25.0
20.0
15.0
10.0
5.0
0.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
b.
The summations needed to compute the slope and the yintercept are:
xi = 399
b1 =
yi = 97.1
( xi x )( yi y ) = 1233.7
( xi x ) 2 = 7648
( xi x )( yi y ) 1233.7
=
= 0.16131
( xi x ) 2
7648
b0 = y b1 x = 1387143
.
(016131
.
)(57) = 4.67675
y = 4.68 + 016
. x
c.
y = 4.68 + 016
. x = 4.68 + 016
. (52.5) = 13.08 or approximately $13,080.
14  14
Salary
14. a.
30.0
29.0
28.0
27.0
26.0
25.0
24.0
23.0
22.0
21.0
20.0
0.00
20.00
40.00
60.00
80.00
100.00
Index
b.
yi = 267.7
( xi x )( yi y ) = 311.9592
( xi x ) 2 = 7520.4042
( xi x )( yi y ) 311.9592
=
= .0415
( xi x ) 2
7520.4042
c.
15. a.
The estimated regression equation and the mean for the dependent variable are:
yi = 0.2 + 2.6 xi
y =8
The sum of squares due to error and the total sum of squares are
SSE = ( yi yi ) 2 = 12.40
SST = ( yi y ) 2 = 80
c.
r = .845 = +.9192
14  15
Chapter 14
16. a.
The estimated regression equation and the mean for the dependent variable are:
y i = 30.33 1.88 x
y = 23.2
The sum of squares due to error and the total sum of squares are
SSE = ( yi yi ) 2 = 6.33
SST = ( yi y ) 2 = 114.80
c.
r = .945 = .9721
Note: the sign for r is negative because the slope of the estimated regression equation is negative.
(b1 = 1.88)
17.
The estimated regression equation and the mean for the dependent variable are:
y i = .75 + .51x
y = 3.4
The sum of squares due to error and the total sum of squares are
SSE = ( yi y i ) 2 = 5.3
SST = ( yi y ) 2 = 11.2
18. a.
The estimated regression equation and the mean for the dependent variable are:
y = 1790.5 + 581.1x
y = 3650
The sum of squares due to error and the total sum of squares are
SSE = ( yi yi ) 2 = 85,135.14
c.
r = .746 = +.8637
14  16
The estimated regression equation and the mean for the dependent variable are:
y = 137.63 + .1489 x
y = 1423.3
The sum of squares due to error and the total sum of squares are
SSE = ( yi yi ) 2 = 7547.14
SST = ( yi y ) 2 = 47,582.10
c.
20. a.
r = .84 = +.92
Let x = income and y = home price. Summations needed to compute the slope and yintercept are:
xi = 1424
b1 =
yi = 2455.5
( xi x )( yi y ) = 4011
( xi x ) 2 = 1719.618
( xi x )( yi y )
4011
=
= 2.3325
2
( xi x )
1719.618
b.
The sum of squares due to error and the total sum of squares are
SSE = ( yi y i ) 2 = 2017.37
SST = ( yi y ) 2 = 11,373.09
c.
21. a.
yi = 33, 700
( xi x )( yi y ) = 712,500
( xi x )( yi y ) 712,500
=
= 7.6
( xi x ) 2
93, 750
14  17
( xi x ) 2 = 93, 750
Chapter 14
b0 = y b1 x = 5616.67 (7.6)(575) = 1246.67
y = 1246.67 + 7.6 x
b.
$7.60
c.
The sum of squares due to error and the total sum of squares are:
SSE = ( yi y i ) 2 = 233,333.33
SST = ( yi y ) 2 = 5, 648,333.33
yi = 10, 221
( xi x )( yi y ) = 34,359.81
( xi x )2 = 291.389
( xi x )( yi y ) 34,359.81
=
= 117.9173
( xi x ) 2
291.389
b.
The sum of squares due to error and the total sum of squares are:
SSE = ( yi y i ) 2 = 1, 678, 294
SST = ( yi y ) 2 = 5, 729,911
r = .7071 = +.84
14  18
c.
( xi x ) 2 = 10
sb1 =
d.
t=
( xi x )
2.033
10
= 0.643
b1
2.6
=
= 4.04
sb1 .643
Using t table (3 degrees of freedom), area in tail is between .01 and .025
pvalue is between .02 and .05
Actual pvalue = .0272
Because pvalue , we reject H0: 1 = 0
e.
24. a.
Sum of Squares
67.6
12.4
80.0
Mean Square
67.6
4.133
F
16.36
b.
c.
( xi x ) 2 = 30.8
sb1 =
d.
Degrees of Freedom
1
3
4
t=
( xi x )
1.453
30.8
= 0.262
b1 188
.
=
= 7.18
.262
sb1
Using t table (3 degrees of freedom), area in tail is less than .005; pvalue is less than .01
Actual pvalue = .0056
Because pvalue , we reject H0: 1 = 0
e.
14  19
Chapter 14
Sum of Squares
108.47
6.33
114.80
Degrees of Freedom
1
3
4
Mean Square
108.47
2.11
F
51.41
b.
( xi x ) 2 = 22.8
sb1 =
t=
( xi x )
1.33
22.8
= 0.28
b1 .51
.
=
= 182
sb1 .28
Using t table (3 degrees of freedom), area in tail is between .05 and .10
pvalue is between .10 and .20
Actual pvalue = .1664
Because pvalue > , we cannot reject H0: 1 = 0; x and y do not appear to be related.
c.
26. a.
14  20
sb1 =
t=
s
( xi x )
145.89
0.74
= 169.59
b1 58108
.
=
= 3.43
sb1 169.59
Using t table (4 degrees of freedom), area in tail is between .01 and .025
pvalue is between .02 and .05
Actual pvalue = .0266
Because pvalue , we reject H0: 1 = 0
b.
c.
Source of Variation
Regression
Error
Total
27. a.
Sum of Squares
249864.86
85135.14
335000
Degrees of Freedom
1
4
5
yi = 1654
( xi x )( yi y ) = 315.2
( xi x ) 2 = 10.1
( xi x )( yi y ) 315.2
=
= 31.2079
( xi x ) 2
10.1
b.
Mean Square
249864.86
21283.79
14  21
F
11.74
Chapter 14
Since F = 31.63 > F.05 = 5.32 we reject H0: 1 = 0.
Upper support and price are related.
c.
d.
28.
29.
Sum of Squares
5,415,000.00
233,333.33
5,648,333.33
Degrees of Freedom
1
4
5
Mean Square
5,415,000
58,333.33
F
92.83
Using F table (1 degree of freedom numerator and 4 denominator), pvalue is less than .01
Actual pvalue = .0006
Because pvalue , we reject H0: 1 = 0. Production volume and total cost are related.
30.
( xi x ) 2 = 291.389
14  22
sb1 =
t=
s
( xi x )
458.02
291.389
= 26.832
b1 117.9173
=
= 4.395
26.832
sb1
Using t table (1 degree of freedom numerator and 8 denominator), area in tail is less than .005
pvalue is less than .01
Actual pvalue = .0024
Because pvalue , we reject H0: 1 = 0
There is a significant relationship between x and y.
31.
32. a.
b.
s = 2.033
x =3
( xi x ) 2 = 10
s yp = s
2
1 ( xp x )
1 (4 3) 2
+
= 2.033 +
= 1.11
2
n ( xi x )
5
10
sind = s 1 +
2
1 ( xp x )
1 (4 3) 2
2.033
1
+
=
+
+
= 2.32
n ( xi x ) 2
5
10
14  23
Chapter 14
d.
y p t / 2 sind
s = 1.453
x = 3.8
s yp = s
( xi x ) 2 = 30.8
2
1 ( xp x )
1 (3 3.8) 2
+
= 1.453 +
= .068
2
n ( xi x )
5
30.8
y = 30.33 188
. x = 30.33 188
. (3) = 24.69
y p t / 2 s y p
sind = s 1 +
d.
y p t / 2 sind
2
1 ( xp x )
1 (3 3.8) 2
1.453
1
+
=
+
+
= 1.61
n ( xi x ) 2
5
30.8
s = 1.33
x = 5.2
s yp = s
( xi x ) 2 = 22.8
2
1 ( xp x )
1 (3 5.2) 2
+
=
1.33
+
= 0.85
n ( xi x ) 2
5
22.8
14  24
sind = s 1 +
2
1 ( xp x )
1 (3 5.2) 2
+
=
1.33
1
+
+
= 1.58
n ( xi x ) 2
5
22.8
y p t / 2 sind
s = 145.89
x = 3.2
s yp = s
( xi x ) 2 = 0.74
2
1 ( xp x )
1 (3 3.2) 2
+
=
145.89
+
= 68.54
n ( xi x ) 2
6
0.74
sind = s 1 +
2
1 ( xp x )
1 (3 3.2) 2
+
= 145.89 1 + +
= 161.19
2
n ( xi x )
6
0.74
y p t / 2 sind
s = 3.5232
x = 183.4667
s yp = s
( xi x ) 2 = 11,867.73
2
1 ( xp x )
1 (200 183.4667) 2
+
= 3.5232
+
= 1.055
2
n ( xi x )
15
11,867.73
y p t / 2 s y p
14  25
Chapter 14
c.
sind = s 1 +
2
1 ( xp x )
1 (200 183.4667) 2
+
=
3.5232
1
+
+
= 3.678
n ( xi x ) 2
15
11,867.73
y p t / 2 sind
x = 57
( xi x ) 2 = 7648
s2 = 1.88
s yp = s
s = 1.37
2
1 ( xp x )
1 (52.5 57) 2
+
=
1.37
+
= 0.52
n ( xi x ) 2
7
7648
y p t / 2 s y p
sind = 1.47
13.08 2.571 (1.47) = 13.08 3.78
or 9.30 to 16.86 or $9,300 to $16,860
c.
d.
Any deductions exceeding the $16,860 upper limit could suggest an audit.
38. a.
b.
( xi x ) 2 = 93, 750
2
1 ( xp x )
1 (500 575) 2
+
= 241.52 1 + +
= 267.50
2
n ( xi x )
6
93, 750
y p t / 2 sind
Based on one month, $6000 is not out of line since $3815.10 to $6278.24 is the prediction interval.
However, a sequence of five to seven months with consistently high costs should cause concern.
14  26
yi = 309
( xi x )( yi y ) = 1471
( xi x ) 2 = 838
( xi x )( yi y ) 1471
=
= 1.7554
838
( xi x ) 2
b.
c.
2
1 ( xp x )
1 (30 29) 2
+
= 14.41 +
= 5.47
2
n ( xi x )
7
838
sind = s 1 +
2
1 ( xp x )
1 (30 29) 2
14.41
1
+
=
+
+
= 15.41
n ( xi x ) 2
7
838
y p t / 2 sind
9
y = 20.0 + 7.21x
1.3626
14  27
Chapter 14
d.
e.
41. a.
b.
b1 B1 .8951 0
=
= 6.01
sb1
.149
Using t table (1 degree of freedom numerator and 8 denominator), area in tail is less than .005
pvalue is less than .01
Actual pvalue = .0004
Because pvalue , we reject H0: B1 = 0
c.
42 a.
b.
30
c.
d.
43. a.
14  28
Coef
4.979
2.9370
S = 8.457
SE Coef
3.380
0.2934
RSq = 80.7%
T
1.47
10.01
P
0.154
0.000
RSq(adj) = 79.9%
Analysis of Variance
Source
Regression
Residual Error
Total
DF
1
24
25
SS
7167.9
1716.6
8884.5
MS
7167.9
71.5
F
100.22
P
0.000
Fit
SE Fit
34.35
1.66
95.0% CI
30.93,
b.
c.
d.
e.
95.0% PI
16.56,
37.77)
52.14)
44. a/b. The scatter diagram shows a linear relationship between the two variables.
c.
Coef
37.066
0.7791
S = 4.889
SE Coef
3.530
0.2226
RSq = 43.4%
T
10.50
3.50
P
0.000
0.003
RSq(adj) = 39.8%
Analysis of Variance
Source
Regression
Residual Error
Total
DF
1
16
17
SS
292.89
382.37
675.26
MS
292.89
23.90
F
12.26
P
0.003
Fit
17.59
28.26
SE Fit
2.51
1.42
95.0% CI
( 12.27,
22.90)
( 25.26,
31.26)
14  29
(
(
95.0% PI
5.94,
29.23)
17.47,
39.05)
Chapter 14
New Obs
1
2
Vacancy%
25.0
11.3
d.
Since the pvalue = 0.003 is less than = .05, the relationship is significant.
e.
r2 = .434. The least squares line does not provide a very good fit.
f.
g.
45. a.
xi = 70
b1 =
yi = 76
( xi x )( yi y ) = 200
( xi x ) 2 = 126
( xi x )( yi y ) 200
=
= 1.5873
126
( xi x ) 2
b.
c.
6
Residuals
4
2
0
2
4
6
0
10
15
20
25
s 2 = 23.78
hi =
1 ( xi x ) 2
1 ( xi 14) 2
+
=
+
n ( xi x ) 2 5
126
14  30
46. a.
The standardized residual plot has the same shape as the original residual plot. The
curvature observed indicates that the assumptions regarding the error term may not be
satisfied.
y = 2.32 + .64 x
b.
4
3
Residuals
2
1
0
1
2
3
4
0
10
The assumption that the variance is the same for all values of x is questionable. The variance appears
to increase for larger values of x.
47. a.
b.
14  31
Chapter 14
c.
10
Residuals
5
0
5
10
15
25
35
45
55
65
Predicted Values
d.
48. a.
The residual plot leads us to question the assumption of a linear relationship between x and y. Even
though the relationship is significant at the .05 level of significance, it would be extremely
dangerous to extrapolate beyond the range of the data.
y = 80 + 4 x
8
6
Residuals
4
2
0
2
4
6
8
0
10
b.
49. a.
14  32
12
14
Standardized Residuals
2
1.5
1
0.5
0
0.5
1
1.5
0
10
20
30
40
50
60
c.
50. a.
There is an unusual trend in the residuals. The assumptions concerning the error term appear
questionable.
The MINITAB output is shown below:
The regression equation is
Y = 66.1 + 0.402 X
Predictor
Constant
X
S = 12.62
Coef
66.10
0.4023
SE Coef
32.06
0.2276
Rsq = 38.5%
T
2.06
1.77
p
0.094
0.137
Rsq(adj) = 26.1%
Analysis of Variance
SOURCE
DF
Regression
1
Residual Error 5
Total
6
SS
497.2
795.7
1292.9
Unusual Observations
Obs.
X
Y
1
135
145.00
Fit
120.42
MS
497.2
159.1
SEFit
4.87
F
3.12
Residual
24.58
p
0.137
St.Resid
2.11R
b.
14  33
Chapter 14
2.4+
STDRESID1.2+
0.0+
1.2+

*
*
*
*
*
++++++YHAT
110.0
115.0
120.0
125.0
130.0
135.0
The standardized residual plot indicates that the observation x = 135, y = 145 may be an outlier;
note that this observation has a standardized residual of 2.11.
c.
51. a.
14  34
Predictor
Constant
X
S = 3.181
Coef
13.002
0.4248
SE Coef
2.396
0.2116
Rsq = 40.2%
T
5.43
2.01
p
0.002
0.091
Rsq(adj) = 30.2%
Analysis of Variance
SOURCE
DF
Regression
1
Residual Error 6
Total
7
SS
40.78
60.72
101.50
Unusual Observations
Obs.
X
Y
7
12.0
24.00
8
22.0
19.00
MS
40.78
10.12
Fit Stdev.Fit
18.10
1.20
22.35
2.78
F
4.03
Residual
5.90
3.35
p
0.091
St.Resid
2.00R
2.16RX
c.
Y
24.0+

14  35
Chapter 14
20.0+
16.0+
12.0+

*
*
*
*
*
*
*
++++++X
0.0
5.0
10.0
15.0
20.0
25.0
The scatter diagram indicates that the observation x = 22, y = 19 is an influential observation.
52. a.
Coef
4.089
0.19552
S = 5.044
SE Coef
2.168
0.03635
RSq = 78.3%
T
1.89
5.38
P
0.096
0.001
RSq(adj) = 75.6%
Analysis of Variance
Source
Regression
Residual Error
Total
DF
1
8
9
SS
735.84
203.51
939.35
Unusual Observations
Obs
MediaExp
Amount
1
120
36.30
Fit
27.55
MS
735.84
25.44
F
28.93
SE Fit
3.30
Residual
8.75
P
0.001
St Resid
2.30R
Minitab identifies observation 1 as having a large standardized residual; thus, we would consider
observation 1 to be an outlier.
The Minitab output is shown below:
The regression equation is
Price = 28.0 + 0.173 Volume
Predictor
Constant
Volume
S = 17.53
Coef
27.958
0.17289
SE Coef
4.521
0.07804
RSq = 17.0%
T
6.18
2.22
P
0.000
0.036
RSq(adj) = 13.5%
Analysis of Variance
Source
Regression
Residual Error
DF
1
24
SS
1508.4
7376.1
14  36
MS
1508.4
307.3
F
4.91
P
0.036
Total
25
8884.5
Unusual Observations
Obs
Volume
Price
22
230
40.00
Fit
67.72
SE Fit
15.40
Residual
27.72
St Resid
3.31RX
b.
The Minitab output identifies observation 22 as having a large standardized residual and is an
observation whose x value gives it large influence. The following residual plot verifies these
observations.
Standardized Residual
1
2
3
30
40
50
60
70
Fitted Value
54. a.
Coef
707.0
0.0048154
S = 379.8
SE Coef
118.0
0.0008076
RSq = 66.4%
T
5.99
5.96
P
0.000
0.000
RSq(adj) = 64.5%
Analysis of Variance
Source
Regression
Residual Error
Total
Unusual
Obs
6
17
DF
1
18
19
Observations
MktCap
Salary
507217
3325.0
120967
116.2
SS
5129071
2596647
7725718
Fit
3149.5
1289.5
MS
5129071
144258
F
35.55
SE Fit
338.6
86.4
Residual
175.5
1173.3
P
0.000
St Resid
1.02 X
3.17R
b.
14  37
Chapter 14
Standardized Residuals
3
2
1
0
1
2
3
4
500
1000
1500
2000
2500
3000
3500
Predicted Values
55.
No. Regression or correlation analysis can never prove that two variables are causally related.
56.
The estimate of a mean value is an estimate of the average of all y values associated with the same x.
The estimate of an individual y value is an estimate of only one of the y values associated with a
particular x.
57.
58. a.
Coef
9.265
0.7105
SE Coef
1.099
0.1474
RSq = 74.4%
T
8.43
4.82
P
0.000
0.001
RSq(adj) = 71.2%
Analysis of Variance
Source
Regression
Residual Error
Total
DF
1
8
9
SS
46.784
16.116
62.900
MS
46.784
2.015
F
23.22
P
0.001
b.
Since the pvalue corresponding to F = 23.22 = .001 < = .05, the relationship is significant.
c.
r 2 = .744; a good fit. The least squares line explained 74.4% of the variability in Price.
d.
59. a.
Coef
3.834
SE Coef
5.903
14  38
T
0.65
P
0.529
Common
0.29567
S = 11.04
0.02648
RSq = 91.9%
11.17
0.000
RSq(adj) = 91.2%
Analysis of Variance
Source
Regression
Residual Error
Total
DF
1
11
12
SS
15208
1341
16550
MS
15208
122
F
124.72
P
0.000
b.
y = 3.83 + .296(150) = 40.57 ; approximately 40.6 million shares of options grants outstanding.
c.
r 2 = .919; a very good fit. The least squares line explained 91.9% of the variability in Options.
60. a.
Coef
0.2747
0.9498
S = 2.664
SE Coef
0.9004
0.3569
RSq = 47.0%
T
0.31
2.66
P
0.768
0.029
RSq(adj) = 40.3%
Analysis of Variance
Source
DF
Regression
1
Residual Error 8
Total
9
SS
50.255
56.781
107.036
MS
50.255
7.098
F
7.08
P
0.029
b.
Since the pvalue = 0.029 is less than = .05, the relationship is significant.
c.
r2 = .470. The least squares line does not provide a very good fit.
d.
61. a.
14  39
Chapter 14
100
High Temperature
90
80
70
60
50
40
35
45
55
65
75
85
Low Temperature
b.
It appears that there is a positive linear relationship between the two variables.
c.
Coef
23.899
0.8980
SE Coef
6.481
0.1121
RSq = 78.1%
T
3.69
8.01
P
0.002
0.000
RSq(adj) = 76.9%
Analysis of Variance
Source
Regression
Residual Error
Total
62.
DF
1
18
19
SS
1792.3
502.7
2294.9
MS
1792.3
27.9
F
64.18
P
0.000
d.
Since the pvalue corresponding to F = 64.18 = .000 < = .05, the relationship is significant.
e.
r 2 = .781; a good fit. The least squares line explained 78.1% of the variability in high temperature.
f.
r = .781 = +.88
Coef
10.528
0.9534
SE Coef
3.745
0.1382
Rsq = 85.6%
T
2.81
6.90
p
0.023
0.000
Rsq(adj) = 83.8%
Analysis of Variance
14  40
SOURCE
DF
Regression
1
Residual Error 8
Total
9
Fit
39.13
Stdev.Fit
1.49
SS
860.05
144.47
1004.53
(
MS
860.05
18.06
95% C.I.
35.69, 42.57)
F
47.62
p
0.000
95% P.I.
28.74, 49.52)
a.
y = 10.5 + .953 x
b.
Since the pvalue corresponding to F = 47.62 = .000 < = .05, we reject H0: 1 = 0.
c.
d.
63. a.
Coef
22.174
0.14783
S = 1.489
SE Coef
1.653
0.04391
RSq = 73.9%
T
13.42
3.37
P
0.000
0.028
RSq(adj) = 67.4%
Analysis of Variance
Source
Regression
Residual Error
Total
DF
1
4
5
SS
25.130
8.870
34.000
MS
25.130
2.217
F
11.33
P
0.028
SE Fit
0.896
95.0% CI
12.294, 17.271)
95.0% PI
9.957, 19.608)
b.
Since the pvalue corresponding to F = 11.33 = .028 < = .05, the relationship is significant.
c.
r 2 = .739; a good fit. The least squares line explained 73.9% of the variability in the number of
defects.
d.
Using the Minitab output in part (a), the 95% confidence interval is 12.294 to 17.271.
64. a.
b.
There appears to be a negative linear relationship between distance to work and number of days
absent.
14  41
Chapter 14
Coef
8.0978
0.34420
S = 1.289
SE Coef
0.8088
0.07761
Rsq = 71.1%
T
10.01
4.43
p
0.000
0.002
Rsq(adj) = 67.5%
Analysis of Variance
SOURCE
DF
Regression
1
Residual Error 8
Total
9
Fit
6.377
SS
32.699
13.301
46.000
Stdev.Fit
0.512
MS
32.699
1.663
95% C.I.
5.195, 7.559)
F
19.67
p
0.002
95% P.I.
3.176, 9.577)
c.
d.
r2 = .711. The estimated regression equation explained 71.1% of the variability in y; this is a
reasonably good fit.
e.
The 95% confidence interval is 5.195 to 7.559 or approximately 5.2 to 7.6 days.
65. a.
Coef
220.00
131.67
S = 75.50
SE Coef
58.48
17.80
Rsq = 87.3%
T
3.76
7.40
p
0.006
0.000
Rsq(adj) = 85.7%
Analysis of Variance
SOURCE
DF
Regression
1
Residual Error 8
Total
9
Fit
746.7
Stdev.Fit
29.8
SS
312050
45600
357650
(
MS
312050
5700
95% C.I.
678.0, 815.4)
F
54.75
p
0.000
95% P.I.
559.5, 933.9)
b.
Since the pvalue corresponding to F = 54.75 is .000 < = .05, we reject H0: 1 = 0.
c.
d.
66. a.
14  42
Coef
5.847
0.8295
S = 7.523
SE Coef
7.972
0.1095
Rsq = 87.8%
T
0.73
7.58
p
0.484
0.000
Rsq(adj) = 86.2%
Analysis of Variance
SOURCE
DF
Regression
1
Residual Error 8
Total
9
Fit
84.65
SS
3249.7
452.8
3702.5
Stdev.Fit
3.67
MS
3249.7
56.6
95% C.I.
76.19, 93.11)
F
57.42
p
0.000
95% P.I.
65.35, 103.96)
b.
Since the pvalue corresponding to F = 57.42 is .000 < = .05, we reject H0: 1 = 0.
c.
84.65 points
d.
67. a.
Coef
0.4710
0.00003868
S = 0.2088
SE Coef
0.5842
0.00001731
RSq = 21.7%
T
0.81
2.23
P
0.431
0.038
RSq(adj) = 17.4%
Analysis of Variance
Source
Regression
Residual Error
Total
DF
1
18
19
SS
0.21749
0.78451
1.00200
MS
0.21749
0.04358
F
4.99
P
0.038
Fit
0.8828
SE Fit
0.0523
95.0% CI
( 0.7729, 0.9927)
95.0% PI
( 0.4306, 1.3349)
b.
Since the pvalue = 0.038 is less than = .05, the relationship is significant.
c.
r2 = .217. The least squares line does not provide a very good fit.
d.
14  43