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13.6 Predicting with a Regression Equation

Feeding new x values into a fitted line, the danger of extrapolating beyond the observed range, and how confidence intervals around a forecast are formed.

Introductory Business Statistics 2e, 13.6 Predicting with a Regression Equation

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6 exercises

13.6 Exercise 1

We predict that statistics students who earn a grade of 73 on the third exam will earn a grade of 179.08 on the final exam, on average.

a. What would you predict the final exam score to be for a student who scored a 66 on the third exam?

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13.6 Exercise 2

We predict that statistics students who earn a grade of 73 on the third exam will earn a grade of 179.08 on the final exam, on average.

b. What would you predict the final exam score to be for a student who scored a 90 on the third exam?

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13.6 Exercise 4

True or False? If False, correct it: Suppose you are performing a simple linear regression of Y on X and you test the hypothesis that the slope β is zero against a two-sided alternative. You have n=25n = 25 observations and your computed test (t) statistic is 2.6. Then your P-value is given by .01 < P < .02, which gives borderline significance (i.e. you would reject H0H_{0} at α=.02\alpha = .02 but fail to reject H0H_{0} at α=.01\alpha = .01).

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13.6 Exercise 5

An economist is interested in the possible influence of "Miracle Wheat" on the average yield of wheat in a district. To do so they fit a linear regression of average yield per year against year after introduction of "Miracle Wheat" for a ten year period.

The fitted trend line is

y^j=80+1.5⋅Xj\overset{^}{y}_{j} = 80 + 1.5 \cdot X_{j}

(YjY_{j}: Average yield in j year after introduction)

(XjX_{j}: j year after introduction).

  1. What is the estimated average yield for…
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13.6 Exercise 6

An interpretation of r=0.5r = 0.5 is that the following part of the Y-variation is associated with which variation in X:

  1. most
  2. half
  3. very little
  4. one quarter
  5. none of these
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13.6 Exercise 7

Which of the following values of r indicates the most accurate prediction of one variable from another?

  1. r=1.18r = 1.18
  2. r=−.77r = −.77
  3. r=.68r = .68
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Adapted from Introductory Business Statistics 2e © 2023 Rice University. Licensed under CC BY 4.0. Source: Introductory Business Statistics 2e. Imported at revision 50ec917.