Classified ads in a newspaper offered for sale 18 used cars of the same make and
ID: 3265189 • Letter: C
Question
Classified ads in a newspaper offered for sale 18 used cars of the same make and model. The output of a regression analysis is given. Assume all conditions for regression have been satisfied. Create a 95% confidence interval for the slope of the regression line and explain what your interval means in context. Find the 95% confidence interval for the slope. The confidence interval is (Round to two decimal places as needed.) What does the 95% confidence interval mean in context? A. It can be said with 95% confidence that next year the price of each used car will have changed by an amount contained in the interval. B. It can be said with 95% confidence that the interval contains the true rate at which the price of a used car changes in relation to its age. C. The true rate at which the price of a used car changes in relation to its age is between the endpoints of the confidence interval 95% of the time.Explanation / Answer
The slope' 95% CI iss given by :
t at df of n-1 = 18-1=17, 2.11
So, CI is -1033 +/- 2.11*82.31
-1206.67 to -859.33
On the 95% CI the following option is the right interpretation: option B