Suppose you are interested in buying a new Lincoln Navigator or Town Car. You are standing on the sales lot looking at a model with different options. The list price is on the vehicle. As a salesperson approaches, you wonder what the dealer invoice price is for this model withits options. The following data are based on a random selection of these cars of different models and options. Let y be the dealer invoice (in thousands of dollars) for the given vehicle.31.434.536.144.047.8у31.031.632.042.142.2(a) Verify that Ex = 193.8, Ey = 178.9, Ex²Σχ7700.26, Ey2 = 6536.81, Exy = 7088.36, and r = 0.964.ΣΥEx²|Ey²|Σχy(b) Use a 10% level of significance to test the claim thatp 0. (Use 2 decimal places.)critical tConclusionO Reject the null hypothesis, there is sufficient evidence that p 0.O Reject the null hypothesis, there is insufficient evidence that p 0.Fail to reject the null hypothesis, there is insufficient evidence that p 0.O Fail to reject the null hypothesis, there is sufficient evidence that p 0.(c) Verify that Se - 1.7964, a - 4.0858, and b - 0.8177.Sea(d) Find the predicted dealer invoice when the list price is x = 44 (thousand dollars). (Use 2 decimal places.)(e) Find a 95% confidence interval for y when x = 44 (thousand dollars). (Use 2 decimal place.)lower limitupper limit(f) Use a 10% level of significance to test the claim that ß 0. (Use 2 decimal places.)critical tConclusionO Reject the null hypothesis, there is sufficient evidence that ß 0.O Reject the null hypothesis, there is insufficient evidence that ß 0.Fail to reject the null hypothesis, there is insufficient evidence that ß 0.O Fail to reject the null hypothesis, there is sufficient evidence that B 0. (g) Find a 95% confidence interval for ß and interpret its meaning. (Use 3 decimal places.)lower limitupper limitInterpretationO For every $1,000 increase in list price, the dealer price decreases by an amount that falls within the confidence interval.O For every $1,000 increase in list price, the dealer price decreases by an amount that falls outside the confidence interval.O For every $1,000 increase in list price, the dealer price increases by an amount that falls outside the confidence interval.O For every $1,000 increase in list price, the dealer price increases by an amount that falls within the confidence interval.

Question

Suppose you are interested in buying a new Lincoln Navigator or Town Car. You are standing on the sales lot looking at a model with different options. The list price is on the vehicle. As a salesperson approaches, you wonder what the dealer invoice price is for this model withits options. The following data are based on a random selection of these cars of different models and options. Let y be the dealer invoice (in thousands of dollars) for the given vehicle.31.434.536.144.047.8у31.031.632.042.142.2(a) Verify that Ex = 193.8, Ey = 178.9, Ex²Σχ7700.26, Ey2 = 6536.81, Exy = 7088.36, and r = 0.964.ΣΥEx²|Ey²|Σχy(b) Use a 10% level of significance to test the claim thatp > 0. (Use 2 decimal places.)critical tConclusionO Reject the null hypothesis, there is sufficient evidence that p > 0.O Reject the null hypothesis, there is insufficient evidence that p > 0.Fail to reject the null hypothesis, there is insufficient evidence that p > 0.O Fail to reject the null hypothesis, there is sufficient evidence that p > 0.(c) Verify that Se - 1.7964, a - 4.0858, and b - 0.8177.Sea(d) Find the predicted dealer invoice when the list price is x = 44 (thousand dollars). (Use 2 decimal places.)(e) Find a 95% confidence interval for y when x = 44 (thousand dollars). (Use 2 decimal place.)lower limitupper limit(f) Use a 10% level of significance to test the claim that ß > 0. (Use 2 decimal places.)critical tConclusionO Reject the null hypothesis, there is sufficient evidence that ß > 0.O Reject the null hypothesis, there is insufficient evidence that ß > 0.Fail to reject the null hypothesis, there is insufficient evidence that ß > 0.O Fail to reject the null hypothesis, there is sufficient evidence that B > 0. (g) Find a 95% confidence interval for ß and interpret its meaning. (Use 3 decimal places.)lower limitupper limitInterpretationO For every $1,000 increase in list price, the dealer price decreases by an amount that falls within the confidence interval.O For every $1,000 increase in list price, the dealer price decreases by an amount that falls outside the confidence interval.O For every $1,000 increase in list price, the dealer price increases by an amount that falls outside the confidence interval.O For every $1,000 increase in list price, the dealer price increases by an amount that falls within the confidence interval.

Accepted Answer

Solution:
Given that,
X: Independent variable 
     The list price of vehicle ( in thousands…