Use the data given below to answer the following questions).
Following is an extract from the database of a construction company. The table shows the height of walls in feet and the cost of raising them. The estimated simple linear regression equation is given as Ŷ = b0 + b1X. Hint: Use Excel functions). $$\begin{array} { | r | r | }
\hline \text { Height ft) } & \text { Cost \$) } \
\hline 4 & 670 \
\hline 3 & 430 \
\hline 7 & 810 \
\hline 9 & 1100 \
\hline 6 & 790 \
\hline 8 & 880 \
\hline 5 & 760 \
\hline 11 & 1200 \
\hline
\end{array}$$
-What is the value of the coefficient b0?
A) -2.25321
B) 0.010697
C) 254.8371
D) 86.81704

Question

Use the data given below to answer the following questions).
Following is an extract from the database of a construction company. The table shows the height of walls in feet and the cost of raising them. The estimated simple linear regression equation is given as Ŷ = b0 + b1X. Hint: Use Excel functions). $$\begin{array} { | r | r | } 
\hline \text { Height ft) } & \text { Cost \$) } \
\hline 4 & 670 \
\hline 3 & 430 \
\hline 7 & 810 \
\hline 9 & 1100 \
\hline 6 & 790 \
\hline 8 & 880 \
\hline 5 & 760 \
\hline 11 & 1200 \
\hline
\end{array}$$
-What is the value of the coefficient b0?
A) -2.25321
B) 0.010697
C) 254.8371
D) 86.81704

Quizplus · Accepted Answer

The coefficient $b_0$ (intercept of the regression line) can be found using the regression analysis feature in Excel or by calculating it manually using the formula that involves the means of X and Y, and the slope $b_1$. Given the data, when you perform a linear regression analysis, $b_0$ represents the starting value of the cost when the height is 0. The correct calculation leads to $b_0 = 254.8371$, indicating the estimated cost at 0 feet height.

Use the Data Given Below to Answer the Following Questions)