The number of initial public offerings of stock issued in a 10-year period and t
ID: 3293762 • 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 617. The equation of the regression line is y^= 30.988x + 17,953.770. Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 617. Select the correct choice below and fill in the answer boxes to complete your choice. (Round to the nearest million dollars 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 617 issues, the proceeds will be between $ and $ B. There is a 95% chance that the predicted proceeds given 617 issues is between $ and $Explanation / Answer
uisng minitab
the output is
Regression Analysis: y versus x
Analysis of Variance
Source DF Adj SS Adj MS F-Value P-Value
Regression 1 385667258 385667258 7.29 0.027
x 1 385667258 385667258 7.29 0.027
Error 8 423422638 52927830
Total 9 809089896
Model Summary
S R-sq R-sq(adj) R-sq(pred)
7275.15 47.67% 41.13% 21.79%
Coefficients
Term Coef SE Coef T-Value P-Value VIF
Constant 17954 4516 3.98 0.004
x 31.0 11.5 2.70 0.027 1.00
Regression Equation
y = 17954 + 31.0 x
Prediction for y
Regression Equation
y = 17954 + 31.0 x
Variable Setting
x 617
Fit SE Fit 95% CI 95% PI
37073.5 3938.82 (27990.6, 46156.5) (17996.0, 56151.1)