Statistics for Business & Economics, Revised (MindTap Course List)
12th Edition
ISBN: 9781285846323
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Chapter 14.6, Problem 37E
In exercise 13, data were given on the adjusted gross income x and the amount of itemized deductions taken by taxpayers. Data were reported in thousands of dollars. With the estimated regression equation ŷ = 4.68 + .16x, the point estimate of a reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $52,500 is $13,080.
- a. Develop a 95% confidence interval for the
mean amount of total itemized deductions for all taxpayers with an adjusted gross income of $52,500. - b. Develop a 95% prediction
interval estimate for the amount of total itemized deductions for a particular taxpayer with an adjusted gross income of $52,500. - c. If the particular taxpayer referred to in part (b) claimed total itemized deductions of $20,400, would the IRS agent’s request for an audit appear to be justified?
- d. Use your answer to part (b) to give the IRS agent a guideline as to the amount of total itemized deductions a taxpayer with an adjusted gross income of $52,500 should claim before an audit is recommended.
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In exercise 12, the following data on x = average daily hotel room rate and y = amount spent on entertainment (The Wall Street Journal, August 18, 2011) lead to the estimated regression equation ŷ = 17.49 + 1.0334x. For these data SSE = 1541.4.Click on the datafile logo to reference the data. Use Table 1 of Appendix B.
a. Predict the amount spent on entertainment for a particular city that has a daily room rate of $89 (to 2 decimals).$
b. Develop a 95% confidence interval for the mean amount spent on entertainment for all cities that have a daily room rate of $89 (to 2 decimals).$ to $
c. The average room rate in Chicago is $128. Develop a 95% prediction interval for the amount spent on entertainment in Chicago (to 2 decimals).
A researcher developed a regression model to predict the cost of a meal based on the summated rating (sum of ratings for food, decor,and service) and the cost per meal for 12 restaurants. The results of the study show that
b1=1.4379 and Sb1=0.1397.
a. At the 0.05 level of significance, is there evidence of a linear relationship between the summated rating of a restaurant and the cost of a meal?
b. Construct a 95% confidence interval estimate of the population slope,
β1.
a. Determine the hypotheses for the test. Choose the correct answer below.
A.
H0:
β1=0
H1:
β1≠0
B.
H0:
β0≤0
H1:
β0>0
C.
H0:
β1≤0
H1:
β1>0
D.
H0:
β0≥0
H1:
β0<0
E.
H0:
β1≥0
H1:
β1<0
F.
H0:
β0=0
H1:
β0≠0
Compute the test statistic.
The test statistic is ?
(Round to two decimal places as needed.)
Determine the critical value(s).
The critical value(s) is(are) ?
(Use a comma to separate answers as needed.…
In exercise 12, the following data on x = average daily hotel room rate and y = amount spent on entertainment (The Wall Street Journal, August 18, 2011) lead to the estimated regression equation ŷ = 17.49 + 1.0334x. For these data SSE = 1541.4. Use Table 1 of Appendix B.Click on the datafile logo to reference the data.
a. Predict the amount spent on entertainment for a particular city that has a daily room rate of $89 (to 2 decimals).$
b. Develop a 95% confidence interval for the mean amount spent on entertainment for all cities that have a daily room rate of $89 (to 2 decimals).$ to $
c. The average room rate in Chicago is $128. Develop a 95% prediction interval for the amount spent on entertainment in Chicago (to 2 decimals).$ to $
Chapter 14 Solutions
Statistics for Business & Economics, Revised (MindTap Course List)
Ch. 14.2 - Given are five observations for two variables, x...Ch. 14.2 - Given are five observations for two variables, x...Ch. 14.2 - Given are five observations collected in a...Ch. 14.2 - The following data give the percentage of women...Ch. 14.2 - Elliptical trainers are becoming one of the more...Ch. 14.2 - The National Football League (NFL) records a...Ch. 14.2 - A sales manager collected the following data on...Ch. 14.2 - The American Association of Individual Investors...Ch. 14.2 - Using a global-positioning-system (GPS)-based...Ch. 14.2 - On March 31, 2009, Ford Motor Companys shares were...
Ch. 14.2 - Sporty cars are designed to provide better...Ch. 14.2 - Concur Technologies, Inc., is a large...Ch. 14.2 - To the Internal Revenue Service, the...Ch. 14.2 - PCWorld rated four component characteristics for...Ch. 14.3 - The data from exercise 1 follow. xi 1 2 3 4 5 yi 3...Ch. 14.3 - The data from exercise 2 follow. xi 3 12 6 20 14...Ch. 14.3 - The data from exercise 3 follow. xi 2 6 9 13 20 yi...Ch. 14.3 - The following data show the brand, price (), and...Ch. 14.3 - In exercise 7 a sales manager collected the...Ch. 14.3 - Bicycling, the worlds leading cycling magazine,...Ch. 14.3 - An important application of regression analysis in...Ch. 14.3 - Refer to exercise 5 where the following data were...Ch. 14.5 - The data from exercise 1 follow. xi 1 2 3 4 5 yi 3...Ch. 14.5 - The data from exercise 2 follow. xi 3 12 6 20 14...Ch. 14.5 - The data from exercise 3 follow. xi 2 6 9 13 20 yi...Ch. 14.5 - In exercise 18 the data on price () and the...Ch. 14.5 - The number of megapixels in a digital camera is...Ch. 14.5 - In exercise 8 ratings data on x = the quality of...Ch. 14.5 - Refer to exercise 21, where data on production...Ch. 14.5 - Prob. 30ECh. 14.5 - In exercise 20, data on x = weight (pounds) and y...Ch. 14.6 - The data from exercise 1 follow. xi 1 2 3 4 5 yi 3...Ch. 14.6 - The data from exercise 2 follow. xi 3 12 6 20 14...Ch. 14.6 - The data from exercise 3 follow. xi 2 6 9 13 20 yi...Ch. 14.6 - The following data are the monthly salaries y and...Ch. 14.6 - In exercise 7, the data on y = annual sales (...Ch. 14.6 - In exercise 13, data were given on the adjusted...Ch. 14.6 - Refer to exercise 21, where data on the production...Ch. 14.6 - Almost all U.S. light-rail systems use electric...Ch. 14.7 - The commercial division of a real estate firm is...Ch. 14.7 - Following is a portion of the computer output for...Ch. 14.7 - A regression model relating x, number of...Ch. 14.7 - Out-of-state tuition and fees at the top graduate...Ch. 14.7 - Automobile racing, high-performance driving...Ch. 14.8 - Given are data for two variables, x and y. xi 6 11...Ch. 14.8 - The following data were used in a regression...Ch. 14.8 - Data on advertising expenditures and revenue (in...Ch. 14.8 - Refer to exercise 7, where an estimated regression...Ch. 14.8 - Recent family home sales in San Antonio provided...Ch. 14.9 - Consider the following data for two variables, x...Ch. 14.9 - Consider the following data for two variables, x...Ch. 14.9 - Charity Navigator is Americas leading independent...Ch. 14.9 - Many countries, especially those in Europe, have...Ch. 14.9 - Prob. 54ECh. 14 - Does a high value of r2 imply that two variables...Ch. 14 - In your own words, explain the difference between...Ch. 14 - What is the purpose of testing whether 1 = 0? If...Ch. 14 - The Dow Jones Industrial Average (DJIA) and the...Ch. 14 - The following data show Morningstars Fair Value...Ch. 14 - One of the biggest changes in higher education in...Ch. 14 - Jensen Tire Auto is in the process of deciding...Ch. 14 - In a manufacturing process the assembly line speed...Ch. 14 - A sociologist was hired by a large city hospital...Ch. 14 - The regional transit authority for a major...Ch. 14 - A marketing professor at Givens College is...Ch. 14 - The Transactional Records Access Clearinghouse at...Ch. 14 - The Toyota Camry is one of the best-selling cars...Ch. 14 - You have been assigned to analyze the risk...Ch. 14 - As part of a study on transportation safety, the...Ch. 14 - Consumer Reports tested 166 different...Ch. 14 - Finding the Best Car Value When trying to decide...
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