The number of initial public offerings of stock issued in a 10-year period and t
ID: 3266786 • Letter: T
Question
The number of initial public offerings of stock issued in a 10-year period and the total proceeds of these offerings (in millions) are shown in the table. Construct and interpret a 95% prediction interval for the Proceeds when the number of issues is 642. The equation of the regression line is y=32.779x + 17,506 126 Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 642. Select the correct choice below and fill in the answer boxes to complete your choice (Round to the nearest million dollar as needed. Type your answer in standard form where "3.12 million means 3,120,000.) A. We can be 95% confident that when there are 642 issues, the proceeds will be between $ and $ B. There is a 95% chance that the predicted proceeds given 642 issues is between $ and $Explanation / Answer
x <- c(403,459,683,499,489,379,63,72,198,158)
y <- c(17567,27823,43945,32397,37002,35890,21984,10489,31926,28586)
newdata = data.frame( x =642)
> predict(lm(y~x),newdata ,interval = "predict")
fit lwr upr
1 38774.24 18729.15 58819.32
hence 95 % prediction interval is between 18729.15 & 58819.32
option B