A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of tire sales (in thousands of tires)and advertising expenditures (in thousands of dollars).Based on the data set with 6 observations,the simple linear regression equation of the least squares line is = 3 + 1x. = 24 = 124 = 42 = 338 = 196 MSE = 4
Using the sums of the squares given above,determine the 90% prediction interval for an individual month's tire sales when the advertising expenditure is $5000.
A)(3.32 12.68)
B)(3.74 12.26)
C)(6.62 9.38)
D)(6.08 9.92)

Question

A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of tire sales (in thousands of tires)and advertising expenditures (in thousands of dollars).Based on the data set with 6 observations,the simple linear regression equation of the least squares line is  = 3 + 1x.  = 24  = 124  = 42  = 338  = 196 MSE = 4
Using the sums of the squares given above,determine the 90% prediction interval for an individual month's tire sales when the advertising expenditure is $5000.
A)(3.32 12.68) 
B)(3.74 12.26) 
C)(6.62 9.38) 
D)(6.08 9.92)

Quizplus · Accepted Answer

Ŷ = 3 + 1(5)= 8S = F1F1F1S1F1F1F10MSE = F1F1F1S1F1F1F104 = 2Distance Value = 1/6 + ((5 - 4)²/(124 - (24²/6))= .20238t_.05,4 = 2.1328 F1F1F1S1F1F1F10 (2.132)(2)(F1F1F1S1F1F1F101 + .20238)= 3.32,12.68

A Local Tire Dealer Wants to Predict the Number of Tires