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The department of transportation for a particular state kept records of the numb

ID: 3219704 • Letter: T

Question

The department of transportation for a particular state kept records of the number of new cars sold (x) and the number of used cars sold (y) for each month last year. Some computer output from a regression analysis of these data is shown below. 27. During the month of July, 22, 836 new cars and 57, 693 used cars were sold. What is the residual for this data point? (A) 5161 (B) -5161 (C) 5323 (D) -5323 (E) -5774 28. Treating the twelve months last year as a random sample of all months, and assuming that the other conditions for inference are met, at what level of significance do last year's results provide evidence of a non-zero slope in the population regression line of y on x? (A) At the 0.01 level (B) At the 0.05 level, but not at the 0.01 level (C) At the 0.1 level, but not at the 0.05 level (D) At the 0.05 level, but not at the 0.1 level (E) Not at any reasonable significance level

Explanation / Answer

(Qn 27)

Y = number of USED cars sold for July = 57,693

X = number of NEW cars sold for July = 22,836

Given the table, coefficients are:

beta0 = 32971

beta1 = 0.8566

Hence, residual

= Y - (Y_estimated)

= Y - (Beta0 + Beta1*X)

= 57693 - (32971+0.8566*22836)

= 5160.6824

= 5161 (almost)

Hence, answer is (a).

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