Consider the relationship between the number of bids an item on eBay received an
ID: 3326190 • Letter: C
Question
Consider the relationship between the number of bids an item on eBay received and the item's selling price. The following is a sample of 5 items sold through an auction.
Consider the relationship between the number of bids an item on eBay received and the item's selling price. The following is a sample of 5 items sold through an auction. Price in Dollars 26 343 47 49 Number of Bids 4 45 8 8 Table Copy Data Step 1 of 5: Calculate the sum of squared errors (SSE). Use the values bo =-1.2442 and bi = 0.1797 for the calculations. Round your answer to three decimal places.Explanation / Answer
The statistical software output for this problem is:
Simple linear regression results:
Dependent Variable: Number of bids
Independent Variable: Price in Dollars
Number of bids = -1.246124 + 0.17974806 Price in Dollars
Sample size: 5
R (correlation coefficient) = 0.89100352
R-sq = 0.79388727
Estimate of error standard deviation: 1.0743516
Parameter estimates:
Analysis of variance table for regression model:
Hence,
Step - 2: se2 = MSE = 1.154
Step - 3: sb12 = (0.052878189)2 = 0.003
Step - 4: 98% confidence interval: (-0.060, 0.420)
Step - 5: 99% confidence interval: (-0.129, 0.489)
Parameter Estimate Std. Err. DF 98% L. Limit 98% U. Limit Intercept -1.246124 2.1277805 3 -10.907743 8.4154949 Slope 0.17974806 0.052878189 3 -0.060356082 0.41985221