Chapter 13 - Simple Linear Regression Analysis

13-1
CHAPTER 13Simple Linear Regression Analysis
13.1 The best line that can be fitted to the observed data. The slope and the intercept of the least
squares line.
LO2
13.2 Because we do not know how y and x are related outside the experimental region.
LO1, LO2
13.3 a. b
0
= 15.84, b
1
= -0.1279
b. b
1
= -179.6475 / 1404.355 = -0.1279, b
0
= 10.2125 (-0.1279*43.98) = 15.84
c. Both the estimate of the mean and the prediction of the point are calculated by putting the
temperature of 40 into the equation = 15.84 0.1279*40 = 10.724 MMcf.
LO1, LO2
13.4 a. b
0
= 14.82 b
1
= 5.707
The interpretation of b
0
is the starting salary of someone with a GPA of 0.
The interpretation of b
1
is for each increase in GPA of 1, salary goes up $5,707
No. The interpretation of b
0
does not make practical sense since it indicates that someone
with a GPA = 0 would have a starting salary of $14,816, when in fact they would not
have graduated with a GPA = 0.
b. y = 14.82 + 5.707(3.25) = 33.36775
That is, $33,367.75
LO1, LO2
13.5 a. b
0
= 11.4641 b
1
= 24.6022
b
0
0 copiers, 11.46 minutes of service.
b
1
each additional copier adds 24.6022 minutes of service on average.
No. The interpretation of b
0
does not make practical sense since it indicates that 11.46
minutes of service would be required for a customer with no copiers.
b. y = 11.4641 + 24.6022(4) = 109.873, or 109.9 minutes
LO1, LO2

13.6 a. b
0
= 7.814 b
1
= 2.665
b
0
0 price difference yields demand of 7.814.
Chapter 13 - Simple Linear Regression Analysis
13-2

Chapter 13 - Simple Linear Regression Analysis
13-3
b
1
each increase in 1 of price difference increases demand on average by 2.665.
Yes. The interpretation of b
0
does make practical sense since it indicates that 781,409
bottles of detergent would be demanded when the price difference with other products is
zero.
b.

y
= 7.814 + 2.665 (.10) = 8.0805
LO1, LO2
13.7 a.
x
i
y
i

2
i
x

x
i
y
i

5 71 25 355
62 663 3844 41106
35 381 1225 13335
12 138 144 1656
83 861 6889 71463
14 145 196 2030
46 493 2116 22678
52 548 2704 28496
23 251 529 5773
100 1024 10000 102400
41 435 1681 17835
75 772 5625 57900

x
i
= 548

y
i
= 5782

x
i
2
= 34978

x
i
y
i
= 365027

4875 . 18
12
548
1463 . 10
12
5782
1463 . 10
667 . 952 , 9
33 . 982 , 100
667 . 952 , 9
12
) 548 (
978 , 34
) (
33 . 982 , 100
12
) 782 , 5 )( 548 (
027 , 365
) )( (
1 0
1
2
2
2
= |
.
|

\
|
|
.
|

\
|
= =
= = =
= =

=
= =

=
x b y b
SS
SS
b
n
x
x SS
n
y x
y x SS
xx
xy
i
i xx
i i
i i xy



Chapter 13 - Simple Linear Regression Analysis
13-4
b. b
1
is the estimated increase in mean labor cost (10.1463) for every 1 unit increase in the
batch size.
b
0
is the estimated mean labor cost (18.4875) when batch size = 0; no.
c.
y =18.4880+10.1463x
d.
y = 18.4880 + 10.1463(60) = 627.266
LO1, LO2
13.8 a. MINITAB output
Regression Analysis: Sale Price versus Size
The regression equation is
Sale Price = 48.02 + 5.70 Size
b1 = SSxy / SSxx = 1149.18 / 201.6 = 5.70.
b0 = y-bar b1*x-bar = 155.19 5.70*18.8 = 48.03 which is
within rounding 48.02.
b. b
1
is the estimated increase in mean sales price (5.700) for every hundred square foot
increase in home size.
b
0
is the estimated mean sales price when square footage = 0. No, the interpretation of
b
0
makes no practical sense.
c. . 700 . 5 02 . 48 x y + =
d.

y = 48.02 + 5.700 (20) = 162.02.
That is, $162,020.
LO1, LO2
13.9 (1) Mean of error terms = 0
(2) Constant variance
(3) Normality
(4) Independence
LO3

Chapter 13 - Simple Linear Regression Analysis
13-5
13.10 o
2
; o That is, the constant variance and standard deviation of the error term populations.
LO3
13.11


LO3
13.12


LO3
13.13


LO3
13.14 3166 . , 1002 .
28
8059 . 2
2 2
= = = = s s s
LO3
13.15 64154 . 8 , 67624 . 74
10
7624 . 746
2
= = = s s
LO3
13.16

LO3

13.17


654 . 0 428 . 0
428 . 0
2 8
568 . 2
2
2
2
= = =
=

=
s s
n
SSE
s
61521 . 4 30018 . 21
3002 . 21
2 11
7017 . 191
2
2
2
= = =
=

=
s s
n
SSE
s
58773 . 10 1 . 112
1 . 112
2 10
8 . 896
2
2
2
= = =
=

=
s s
n
SSE
s
2776 . 5 8530 . 27
8530 . 27
2 10
8242 . 222
2
2
2
= = =
=

=
s s
n
SSE
s
5363 . 0 2876 . 0
2876 . 0
2 7
438 . 1
2
2
2
= = =
=

=
s s
n
SSE
s
Chapter 13 - Simple Linear Regression Analysis
13-6
LO3
13.18 Strong (o = .05) or very strong (o = .01) evidence that the regression relationship is
significant.
LO4
13.19 Explanations will vary.
LO4
13.20 a. b
0
= 15.8379 b
1
= -0.1279
b. SSE = 2.5679 s
2
= 0.4280 s = 0.6542
c.
1
b
s = 0.0175 t = -7.3277
t = b
1
/
1
b
s = -0.1279 /0.0175 = -7.3277
d. df = 6 t
.025
= 2.447 Reject H
0
, Strong evidence of a significant relationship between x
and y.
e. t
.005
= 3.707 Reject H
0
, Very strong evidence of a significant relationship between x and
y.
f. p-value =.0003 Reject at all o, Extremely strong evidence of a significant relationship
between x and y.
g. 95% Cl: [b
1
t
.025

1
b
s ] = -0.1279 (2.447)(0.0175) = [-0.1706, -0.0852]
We are 95% confident that the average fuel consumption decreases by between 0.0852
MMcf and 0.1706 MMcf for each 1 degree increase in monthly temperature.
h. 99% Cl: [b
1
t
.005

1
b
s ] = -0.1279 (3.707)(0.0175) = [-0.1928, -0.0630]
We are 99% confident that the average fuel consumption decreases by between 0.0630
MMcf and 0.1928 MMcf for each 1 degree increase in monthly temperature.

Chapter 13 - Simple Linear Regression Analysis
13-7
i.
0
b
s = 0.8018 t = 19.7535
t = b
0
/
0
b
s = 15.8379 / 0.8018 = 19.7535
j. p-value < 0.000 Reject at all o, Extremely strong evidence that the y-intercept is
significant.
k.



LO2, LO3, LO4

13.21 a. b
0
= 14.816 b
1
= 5.7066
b. SSE = 1.438 s
2
= .288 s = .5363
c.
1
b
s = .3953 t = 14.44
t = b
1
/
1
b
s = 5.7066 /.3953 = 14.44
d. df = 5 t
.025
= 2.571 Reject H
0
, Strong evidence of a significant relationship between x
and y.
e. t
.005
= 4.032 Reject H
0
, Very strong evidence of a significant relationship between x and
y.
f. p-value =.000 Reject at all o, Extremely strong evidence of a significant relationship
between x and y.
g. 95% Cl: [b
1
t
.025

1
b
s ] = 5.7066 (2.571)(.3953) = [4.690, 6.723]
We are 95% confident that the mean starting salary increases by between $4690 and
$6723 for each 1.0 increase in GPA.
h. 99% Cl: [b
1
t
.005

1
b
s ] = 5.7066 (4.032)(.3953) = [4.113, 7.300]
We are 99% confident that the mean starting salary increases by between $4113 and
$7300 for each 1.0 increase in GPA.
i.
0
b
s = 1.235 t = 12.00
t = b
0
/
0
b
s = 14.816 / 1.235 = 12.00

8018 . 0
355 . 1404
) 98 . 43 (
8
1
6542 . 0 .
1
01746 . 0
355 . 1404
6542 . 0
2 2
0
1
= + = + =
= = =
xx
b
xx
b
SS
x
n
s s
SS
s
s
Chapter 13 - Simple Linear Regression Analysis
13-8
j. p-value = .000 Reject at all o, Extremely strong evidence that the y-intercept is
significant.
k.



LO2, LO3, LO4
13.22 a. b
0
= 11.4641 b
1
= 24.6022
b. SSE = 191.7017 s
2
= 21.3002 s = 4.615
c.
1
b
s = .8045 t = 30.580
t = b
1
/
1
b
s = 24.602 /.8045 = 30.580
d. df = 9 t
.025
= 2.262 Reject H
0
, strong evidence of a significant relationship between x
and y.
e. t
.005
= 3.250 Reject H
0
, very strong evidence of a significant relationship between x and
y.
f. p-value = .000 Reject at all o, extremely strong evidence of a significant relationship
between x and y.
g. [24.6022 2.262(.8045)] = [22.782, 26.422]
h. [24.6022 3.250(.8045)] = [21.987,27.217]
i.
0
b
s = 3.4390 t = 3.334
t = b
0
/
0
b
s = 11.464 / 3.439 = 3.334
j. p-value = .0087 Reject at all o except .001
k.


LO2, LO3, LO4

235 . 1
8407 . 1
) 0814 . 3 (
7
1
5363 .
1
3953 .
8407 . 1
5363 .
2 2
0
1
= + = + =
= = =
xx
b
xx
b
SS
x
n
s s
SS
s
s
439 . 3
909 . 32
909 . 3
11
1
61521 . 4
1
8045 .
909 . 32
61521 . 4
2 2
0
1
= + = + =
= = =
xx
b
xx
b
SS
x
n
s s
SS
s
s
Chapter 13 - Simple Linear Regression Analysis
13-9
13.23 See the solutions to 13.20 for guidance.
a. b
0
=7. 814, b
1
= 2. 665
b. 3166 . , 100 . , 806 . 2 SSE
2
= = = s s
c. 31 . 10 , 2585 .
1
= = t s
b

d. Reject H
0
.
e. Reject H
0
.
f. p-value = less than .001; reject H
0
at each value of o
g. [2.665 2.048(.2585)] = [2.136, 3.194]
h. [2.665 2.763(.2585)] = [1.951, 3.379]
i. 82 . 97 , 0799 .
0
= = t s
b

j. p-value = less than .001; reject H
0
.
k.


LO2, LO3, LO4
13.24 See the solutions to 13.20 for guidance.
a. b
0
=18. 488, b
1
=10.1463
b. SSE = 746.7624, 67624 . 74
2
= s , s = 8.642
c. 1344 . 117 , 0866 .
1
= = t s
b

d. Reject H
0
.
e. Reject H
0
.
f. p-value = .000; reject H
0
at each value of o
g. [10.1463 2.228(.0866)] = [9.953, 10.339]
h. [10.1463 3.169(.0866)] = [9.872, 10.421]
i. s
b
0
= 4. 677, t = 3.95



079883 .
49967 . 1
2133 .
30
1
31656 .
1
2585 .
49967 . 1
31656 .
2 2
0
1
= + = + =
= = =
xx
b
xx
b
SS
x
n
s s
SS
s
s
Chapter 13 - Simple Linear Regression Analysis
13-10
j. p-value = .003; fail to reject H
0
at o = .001. Reject H
0
at all other values of o
k.


LO2, LO3, LO4
13.25 See the solutions to 13.20 for guidance.
a.
0
b = 48.02 b
1
= 5.7003
b. SSE = 896.8 s
2
= 112.1 s = 10.588
c.
1
b
s = .7457 t = 7.64
t = b
1
/
1
b
s = 5.7003 /.7457 = 7.64
d. df = 8 t
.025
= 2.306 Reject H
0

e. t
.005
= 3.355 Reject H
0

f. p-value = .000 Reject at all o
g. [3.9807,7.4199]
h. [3.198,8.202]
i.
0
b
s = 14.41 t = 3.33
t =
0
b /
0
b
s = 48.02 / 14.41 = 3.33
j. p-value = .010 Reject at all o except .01 and .001
k.


LO2, LO3, LO4

67658 . 4
667 . 9952
667 . 45
12
1
64154 . 8
1
086621 .
667 . 9952
64154 . 8
2 2
0
1
= + = + =
= = =
xx
b
xx
b
SS
x
n
s s
SS
s
s
41 . 14
6 . 201
8 . 18
10
1
588 . 10
10
1
7457 .
6 . 201
588 . 10
2 2
0
1
= + = + =
= = =
xx
b
xx
b
SS
x
s s
SS
s
s
Chapter 13 - Simple Linear Regression Analysis
13-11
13.26 Find s
b1
from Minitab
The regression equation is
sales = 66.2 + 4.43 ad exp

Predictor Coef SE Coef T P
Constant 66.212 5.767 11.48 0.000
Ad exp 4.4303 0.5810 7.62 0.000

95% C.I. for
1
[ 4.4303 2.306(.5810) ] = [3.091,5.770]
LO4
13.27 a. b1 = 1.2731. If MeanTaste goes up by 1 MeanPreference will go up by 1.2731.
b. (0.9885, 1.5577). We are 95% confident that this interval contains the true slope.
LO2, LO4
13.28 A confidence interval is for the mean value of y. A prediction interval is for an individual
value of y.
LO5
13.29 The distance between x
o
and x , the average of the previously observed values of x.
LO5
13.30 a. 10.721, [10.130, 11.312]
b. 10.721, [9.015, 12.427]
c. dv = 1/8 + (40-43.98)
2
/ 1404.355 = 0.1363; dv = (0.241 / 0.6542)
2
= 0.1357
d. CI: 15.84 -0.1279 * 40 2.447*0.6542*sqrt(0.1363) = [10.13, 11.31]
PI: 15.84 -0.1279 * 40 2.447*0.6542*sqrt(1.1363) = [9.01, 12.43]
e. Since we are predicting fuel consumption for one day when the average temperature is 40
degrees we must use the prediction interval. Since 9.01 < 9.595 and 12.43 > 11.847 the
city cannot be 95% confident it will not pay a fine. For the city to be at least 95%
confident the PI would have to be inside the interval [9.595, 11.847].
LO5

Chapter 13 - Simple Linear Regression Analysis
13-12
13.31 a. 33.362, [32.813, 33.911]
b. 33.362, [31.878, 34.846]
c. 1583 .
8407 . 1
) 0814 . 3 25 . 3 (
7
1
2
=

+ = Value Distance
d. [33.362 2.571(.5363) 1583 . ] = [32.813, 33.911]

[33.362 2.571(.5363) 1583 . 1+ ] = [31.878, 34.846]
LO5
13.32 a. 109.873, [106.721, 113.025]
b. 109.873, [98.967, 120.779]
c. We have x = 4, , 90 . 3 = x , 90 . 32 =
xx
SS 11 = n
distance value 090657961 . 0
90 . 32
) 90 . 3 4 (
11
1
2
=

+ =
So confidence interval is:
| | 016 . 113 , 729 . 106 090657961 . 0 ) 615 . 4 )( 262 . 2 ( 873 . 109 =
this compares (within rounding) to the computer generated output.
For the prediction interval with the same quantities we get
090657961 . 1 ) 615 . 4 )( 262 . 2 ( 873 . 109
= [98.971, 120.775] which also compares within rounding.
d. 113 minutes
LO5
13.33 a. 8.0806; [7.948, 8.213]
b. 8.0806; [7.419, 8.743]
c. dv = (.0648/.316561)
2
= .0419
d. 04215 .
3166 .
065 .
, 3166 . , 065 .
2
= |
.
|

\
|
= = = dist s dist s
99% C.I.: [8.0806 2.763(.065)] = [7.9016, 8.2596]

Chapter 13 - Simple Linear Regression Analysis
13-13
99% P.I.: [ 04215 . 1 ) 3166 (. 763 . 2 0806 . 8 ] = [ 9735 . 8 , 1877 . 7 ]

e. (1) 8.4804; [8.360, 8.600]
(2) 8.4804; [7.821, 9.140]
(3) 03427 .
3166 .
059 .
, 3166 . , 059 .
2
= |
.
|

\
|
= = = dist s dist s
99% C.I.: [8.4804 2.763(.059)] = [8.3857, 8.5251]
99% P.I.: [ 03473 . 1 ) 3166 (. 763 . 2 4804 . 8 ] = [ 3699 . 9 , 5909 . 7 ]
LO5

13.34 a. 627.26, [621.05, 633.47]
b. 627.26, [607.03, 647.49]
c. 104000 .
642 . 8
79 . 2
, 642 . 8 , 7868 . 2
2
= |
.
|

\
|
= = = dist s dist s
99% C.I.: [627.26 3.169(2.79)] = [(618.42, 636.10)]
99% P.I.: [ 104227 . 1 ) 642 . 8 ( 169 . 3 26 . 627 ] = [ 04 . 656 , 48 . 598 ]
LO5
13.35 a. 162.03, [154.04, 170.02]
b. 162.03, [136.34, 187.72]
c. Prediction interval, because it deals with individuals, not an average.
LO5
13.36 Total variation: measures the total amount of variation exhibited by the observed values of y.
Unexplained variation: measures the amount of variation in the values of y that is not
explained by the model (predictor variable).
Explained variation: measures the amount of variation in the values of y that is explained by
the predictor variable.
LO6
13.37 Proportion of the total variation in the n observed values of y that is explained by the simple
linear regression model.
LO6
13.38 Explained variation = 25.549 2.568 = 22.981
r
2
= 22.981 / 25.549 = 0.899
r = +sqrt(0.977)*the sign of b
1
= -0.948

Chapter 13 - Simple Linear Regression Analysis
13-14
89.9% of the variation in fuel consumption can be explained by variation in average
temperature.
LO6
13.39 Explained variation = 61.38 1.438 = 59.942
r
2
= 59.942 / 61.38 = 0.977
r = +sqrt(0.977) = 0.988
97.7% of the variation in starting salary can be explained by variation in GPA.
LO6
13.40 Explained variation = 20,110.5445 191.7017 = 19918.8428
r
2
= 19918.8428 / 20110.5445 = 0.990
r = +sqrt(0.990) = 0.995
99% of the variation in service time can be explained by variation in number of copiers
repaired.
LO6
13.41 Explained variation = 13.459 2.806 = 10.653
r
2
= 10.653 / 13.459 = 0.792
r = +sqrt(0.792) = 0.890
79.2% of the variation in demand can be explained by variation in price differential.
LO6
13.42 Explained variation = 1,025,339.6667 746.7624 = 1,024,592.904
r
2
= 1024592.904 / 1025339.6667 == 0.999
r = +sqrt(0.999) = 0.9995
99.9% of the variation in direct labor can be explained by variation in batch size.
LO6
13.43 Explained variation = 7447.5 896.8 = 6550.7
r
2
= 6550.7 / 7447.5 = 0.88
r = +sqrt(0.88) = 0.938
88% of the variation in sales price can be explained by variation in square footage.
LO6
13.44 is the actual (unknown) value of the correlation between two variables.
LO7
13.45 Calculate t =
2
1
2
r
n r

and obtain its associated p-value. If p-value < o then you reject.
LO7

Chapter 13 - Simple Linear Regression Analysis
13-15
13.46 Reject H
0
at all four values of o.

LO7
13.47 Reject H
0
at all four values of o.
LO7
13.48 H
0
: |
1
= 0 versus H
a
: |
1
=0.
LO8
13.49 ttest on |
1

LO8

13.50 a. F = 22.9808 / (2.5679 / 6)) = 53.6949
b. F
.05
= 5.99 df
1
= 1, df
2
= 6
Since 53.6949 > 5.99, reject H
0
with strong evidence of a significant relationship between
x and y.
c. F
.01
= 13.75 df
1
= 1, df
2
= 6
Since 53.6949 > 13.75, reject H
0
with very strong evidence of a significant relationship
between x and y.
d. p-value =0.0003; Reject H
0
at all levels of o, extremely strong evidence of a significant
relationship between x and y.
e. t
2
= (-7.33)
2
= 53.7289 (approximately equals F = 53.6949)
(t
.025
)
2
= (2.447)
2
= 5.99 = F
.05

LO8
13.51 a. F = 59.942 / (1.438 / 5) = 208.39
b. F
.05
= 6.61 df
1
= 1, df
2
= 5
Since 208.39 > 6.61, reject H
0
with strong evidence of a significant relationship between
x and y.
c. F
.01
= 16.26 df
1
= 1, df
2
= 5
Since 208.39 > 16.26, reject H
0
with very strong evidence of a significant relationship
between x and y.
d. p-value =.000; Reject H
0
at all levels of o, extremely strong evidence of a significant
relationship between x and y.
e. t
2
= (14.44)
2
= 208.51 (approximately equals F = 208.39)
(t
.025
)
2
= (2.571)
2
= 6.61 = F
.05

Chapter 13 - Simple Linear Regression Analysis
13-16

LO8
13.52 a. F = 19918.844 / (191.7017 / 9) = 935.149
b. F
.05
= 5.12 df
1
= 1, df
2
= 9
Since 935.149 > 5.12, reject H
0
with strong evidence of a significant relationship between
x and y.
c. F
.01
= 10.56 df
1
= 1, df
2
= 9
Since 935.149 > 10.56, reject H
0
with very strong evidence of a significant relationship
between x and y.
d. p-value =less than .001; Reject H
0
at all levels of o, extremely strong evidence of a
significant relationship between x and y.
e. t
2
= (30.58)
2
= 935.14 (approximately equals F = 935.149)
(t
.025
)
2
= (2.262)
2
= 5.12 = F
.05

LO8
13.53 a. F = 106.303
b. F
.05
=4.20, reject H
0
(df
1
= 1, df
2
= 28). Strong evidence of a significant relationship
between x and y.
c. F
.01
=7.64, reject H
0
(df
1
= 1, df
2
= 28). Very strong evidence of a significant
relationship between x and y.
d. p-value = less than .001, reject H
0
. Extremely strong evidence of a significant
relationship between x and y.
e. (10. 310)
2
=106.303 (within rounding error)
(t
.025
)
2
= 4.19 = F
.05

LO8
13.54 a. F = 13,720.47
b. Reject H
0
.
c. Reject H
0
.
d. p-value = .000; reject H
0
.
e. (117.13)
2
=13, 720. 47 (within rounding error)
LO8
13.55 a. F = 6550.7 / (896.8 / 8) = 58.43

Chapter 13 - Simple Linear Regression Analysis
13-17
b. F
.05
= 5.32 df
1
= 1, df
2
= 8
Since 58.43 > 5.32, reject H
0
.
c. F
.01
= 11.26 df
1
= 1, df
2
= 8
Since 58.43 > 11.3, reject H
0
.
d. p-value =.000; Reject H
0
at all levels of o
e. t
2
= (7.64)
2
= 58.37 (approximately equals F = 58.43)
(t
.025
)
2
= (2.306)
2
= 5.32 = F
.05

LO8
13.56 They should be plotted against the independent variable and against y . Funneling or curved
patterns indicate violations of the regression assumptions.
LO9
13.57 Create a histogram, stem-and-leaf, and normal plot.
LO9
13.58 Transforming the dependent variable.
LO9
13.59 Approximate horizontal band appearance. No violations indicated.
LO9
13.60 Possible violations of the normality and constant variance assumptions.
LO9
13.61 No.
LO9
13.62 a.





b. No

05 . 1 , 3529 . 5000 . 8529 .
8529 .
1 33
1 ) 10 ( 3
1 3
1 ) ( 3
46 . , 1765 . 3235 . 5000 .
3235 .
1 33
1 ) 4 ( 3
1 3
1 ) ( 3
= =
=
+

=
+

= =
=
+

=
+

z
n
i
z
n
i
Chapter 13 - Simple Linear Regression Analysis
13-18
LO9
13.63 The residual plot has somewhat of a cyclical appearance. Since d =.473 is less than d
L, 05
= 1.27, we conclude there is positive autocorrelation and since 4 .473 = 3.527 and this
is greater than d
U,.05
= 1.45 we conclude that there is not negative autocorrelation.
LO9
13.64 The plot of the residuals shows no pattern to indicate a non-constant variance and are
centered around 0.
LO9
13.65 a. ln y
t
= 2.07012 + 0.25688t
ln y
16
= 2.07012 + 025688(16) = 6.1802
b. e
6.1802
= 483.09
e
5.9945
= 401.22
e
6.3659
= 581.67
c. Growth rate = e
0.25688
= 1.293
This means the growth rate is expected to be 29.3% per year.
LO9
13.66 a. Yes; see the plot in part c.
b. b
0
=306. 619, b
1
= 27.714
c.

y = 306. 61927. 714x



Chapter 13 - Simple Linear Regression Analysis
13-19








d. pvalue = .000, reject H
0
, significant
e. x
0
= $2.10;

y = 248. 420; [244. 511, 252.327]
x
0
= $2.75;

y = 230. 405; [226.697, 234.112]
x
0
= $3.10;

y =220. 705; [216.415, 224. 994]

LO1, LO2, LO4, LO5
13.67 a. b
1
= 6.4424 For every unit increase in width difference, the mean number of accidents
are reduced by 6.4 per 100 million vehicles.
b. p-value = .000 Reject H
0
at all levels of o
c. r
2
= .984 98.4% of the variation in accidents is explained by the width difference.
LO2, LO4, LO6
13.68 a. No
b. Possibly not; Dont take up smoking
LO1, LO2

260






240






220
y

x
2.0 2.4 2.8 3.2
Chapter 13 - Simple Linear Regression Analysis
13-20
13.69 For aggressive stocks a 95% confidence interval for |
1
*
is
] 02512 ,. 00749 [. )] 003724 (. 365 . 2 0163 [. )] 003724 (. 0163 [.
025 .
= = t where t
.025
is based on 7
degrees of freedom.
We are 95% confident that the effect of a one-month increase in the return length time for an
aggressive stock is to increase the mean value of the average estimate of |
1
by between
.00749 and .02512.
For defensive stocks a 95% confidence interval for |
1
*
is
[0.00462 2.365(.00084164)] = [.00661, .00263].
For neutral stocks a 95% confidence interval for |
1
*
is
[.0087255 2.365(.001538)] = [.005088, .01236].
LO2, LO4


13.70 a. Using Figure 13.42, there does seem to be a negative relationship between temperature
and o-ring failure.
b. The temperature of 31 was outside the experimental region.
LO1, LO2
13.71 a. There is a relationship since F = 21.13 with a p-value of .0002.
b. b
1
= 35.2877, [19.2202,51.3553]
LO4
Internet Exercise -- Answers will vary depending on when data was obtained.

Chapter 13 - Simple Linear Regression Analysis
13-21
13.72







The regression equation is
GMAT = 184 + 141 GPA

Predictor Coef SE Coef T P
Constant 184.27 84.63 2.18 0.034
GPA 141.08 25.36 5.56 0.000

S = 21.50 RSq = 39.2% RSq(adj) = 37.9%

Analysis of Variance

Source DF SS MS F P
Regression 1 14316 14316 30.96 0.000
Residual Error 48 22197 462
Total 49 36513

Predicted Values for New Observations

New Obs Fit SE Fit 95.0% CI 95.0% PI
1 678.06 5.16 ( 667.68, 688.45) ( 633.60, 722.53)

Values of Predictors for New Observations

New Obs GPA
1 3.50

LO1, LO2, LO6, LO8
3.6 3.5 3.4 3.3 3.2 3.1
700
650
600
GPA
G
M
A
T
Scatter Plot
GMAT vs GPA