Question

Asked May 7, 2019

questions d and e

Step 1

**Part D:**

The aim is to predict the median school API for a neighbourhood in which the median income is $40,000.

Step 2

Denote *y* as the response variable, median school API and *x* as the predictor, income. In the given output, the column “Parameter Estimate” gives the coefficient corresponding to the variable under the “Variable” column.

The ‘estimate’ of “Intercept” is the intercept of the regression model, which is 655.641. The coefficient of “Income” is the slope, which is given as 1.81123. Using these values, the equation for predicting *y* using *x* is: *y* = 655.641 + 1.81123 *x*.

Here, *x *= 40 (in thousand dollars)

Step 3

**Part E:**

The aim is to find the 90% prediction interval for the median school API for a neighbourhood in whose median income is $40,000.

We assume that the margin of error, *E* of 92.20867 ...

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