Answers Chapter 4 In-Class Work

= 36 + 4.3(70) = 337 4-9. a. Y = 36 + 4.3(80) = 380 b. Y = 36 + 4.3(90) = 423 c. Y

4-10. a.

15-May-13

4-10. b. Demand = Y TV Appearances = X Y 3 6 7 5 10 8 Y = 39.0 X 3 4 7 6 8 5 X = 33 (X X )2 6.25 2.25 2.25 0.25 6.25 0.25 17.5 (Y Y )2 12.25 0.25 0.25 2.25 12.25 2.25 29.5 SST

(X X )(Y Y ) Y
8.75 0.75 0.75 0.75 8.75 0.75 17.5 4 5 8 7 9 6

)2 (Y Y
1 1 1 4 1 4 12 SSE

Y )2 (Y
6.25 2.25 2.25 0.25 6.25 0.25 17.5 SSR

Y = 6.5

X = 5.5

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SST = 29.5; SSE = 12; SSR = 17.5 b1 = 17.5/17.5 = 1 b0 = 6.5 1(5.5) = 1

= 1 + 1X. The regression equation is Y = 1 + 1X = 1 + 1(6) = 7. c. Y

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4-11. See the table for the solution to problem 4-10 to obtain some of these numbers. MSE = SSE/(n k 1) = 12/(6 1 1) = 3 MSR = SSR/k = 17.5/1 = 17.5 F = MSR/MSE = 17.5/3 = 5.83 df1 = k = 1 df2 = n k 1 = 6 1 1 = 4 F0.05, 1, 4 = 7.71 Do not reject H0 since 5.83 7.71. Therefore, we cannot conclude there is a statistically significant relationship at the 0.05 level.

= 1 + 1X. F = 5.83, the significance level is 4-12. Using Excel, the regression equation is Y 0.073. This is significant at the 0.10 level (0.073 0.10), but it is not significant at the 0.05 level. There is marginal evidence that there is a relationship between demand for drums and TV appearances.
4-13.
Fin. Ave Test 1

(Y) 93 78 84 73 84 64 64 95 76 711

(X) 98 77 88 80 96 61 66 95 69 730

(X X )2 285.235 16.901 47.457 1.235 221.679 404.457 228.346 192.901 146.679 1544.9

(Y Y )2 196 1 25 36 25 225 225 256 9 998

(X X )(Y Y ) 236.444 4.111 34.444 6.667 74.444 301.667 226.667 222.222 36.333 1143

Y 91.5 76 84.1 78.2 90 64.1 67.8 89.3 70

)2 (Y Y
2.264 4.168 0.009 26.811 36.188 0.015 14.592 32.766 35.528 152.341

Y )2 (Y
156.135 9.252 25.977 0.676 121.345 221.396 124.994 105.592 80.291 845.659

b1 = 1143/1544.9 = 0.74 b0 = (711/9) 0.74 (730/9) = 18.99

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 = 18.99 + 0.74X a. Y = 18.99 + 0.74(83) = 80.41 b. Y

c. r2 = SSR/SST = 845.629/998 = 0.85; r = 0.92; this means that 85% of the variability in the final average can be explained by the variability in the first test score. 4-14. See the table for the solution to problem 4-13 to obtain some of these numbers. MSE = SSE/(n k 1) = 152.341/(9 1 1) = 21.76 MSR = SSR/k = 845.659/1 = 845.659 F = MSR/MSE = 845.659/21.76 = 38.9 df1 = k = 1 df2 = n k 1 = 9 1 1 = 7 F0.05, 1, 7 = 5.59 Because 38.9 5.59, we can conclude (at the 0.05 level) that there is a statistically significant relationship between the first test grade and the final average. 4-15. F = 38.86; the significance level = 0.0004 (which is extremely small) so there is definitely a statistically significant relationship.

= 13,473 + 37.65(1,860) = $83,502. 4-16. a. Y

b. The predicted average selling price for a house this size would be $83,502. Some will sell for more and some will sell for less. There are other factors besides size that influence the price of the house. c. Some other variables that might be included are age of the house, number of bedrooms, and size of the lot. There are other factors in addition to these that one can identify. d. The coefficient of determination (r2) = (0.63)2 = 0.3969.

= $90.00 + $48.50X1 + $0.40X2 4-17. The multiple regression equation is Y

a. Number of days on the road: X1 = 5; Distance traveled: X2 = 300 miles The amount he may be expected to claim is

= 90.00 + 48.50(5) + $0.40(300) = $452.50 Y

b. The reimbursement request, according to the model, appears to be too high. However, this does not mean that it is not justified. The accountant should question Thomas Williams about his expenses to see if there are other explanations for the high cost. c. A number of other variables should be included, such as the type of travel (air or car), conference fees if any, and expenses for entertainment of customers, and other transportation (cab and limousine) expenses. In addition, the coefficient of correlation is only 0.68 and r2 = (0.68)2 = 0.46. Thus, about 46% of the variability in the cost of the trip is explained by this model; the other 54% is due to other factors.

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4-18. Using computer software to get the regression equation, we get

= 1.03 + 0.0011X Y = predicted GPA and X = SAT score. where Y

If a student scores 1200 on the SAT, we get

= 1.03 + 0.0011(1200) = 2.35. Y

If a student scores 2400 on the SAT, we get

= 1.03 + 0.0011(2400) = 3.67, but this is extrapolating outside the range of X values Y
4-19. a. A linear model is reasonable from the graph below.

= 5.060 + 1.593X b. Y = 5.060 + 1.593(10) = 20.99, or 2,099,000 people. c. Y

d. If there are no tourists, the predicted ridership would be 5.06 (100,000s) or 506,000. Because X = 0 is outside the range of values that were used to construct the regression model, this number may be questionable.

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