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In this Exercise 14.5, we repeat the information from Exercise 14.14.

a. Decide, at the 10%significance level, whether the data provide sufficient evidence to conclude that xis useful for predicting y:

b. Find a 90%confidence interval for the slope of the population regression line.

x04312y19843 y^=1+2x

Short Answer

Expert verified

(a) The data give sufficient evidence to determine that the slope of the population regression line is not 0, and so the variable xis useful for predicting the variable yat the 10%significance level.

(b) The slope of the population regression line is somewhere between 0.95and 3.05, and we can be 90%sure of that.

Step by step solution

01

Part(a) Step 1: Given Information

x04312y19843

y^=1+2x

02

Part(a) Ste 2: Explanation

Decide the null and alternate hypothesis

H0:β1=0(xis not useful for predicting y),

Hα:β1≠0(xis useful for predicting y),

Determine the significance level α

The hypothesis test should be run at a significance level of 10%, or α=0.10.

Computation table

xyxyx2y20100149361681382496414411623649∑xi=10∑yi=25∑xiyi=70∑xi2=30∑yi2=171

Sxy=∑xiyi-∑xi∑yi/n=70-(10)(25)/5=70-250/5=70-50=20

Sxx=∑xi2-∑xi2/n=30-(10)2/5=30-100/5=30-20=10

03

Part(a) Step 3: Calculation

The entire amount of square SST is calculated as follows:

Syy=∑yi2-∑yi2/n=171-(25)2/5=171-625/5=171-125=46

SSR regression sum of squares is calculated by:

SSR=Sxy2Sxx=(20)210=40010=40

SSE=SST-SSR=46-40=6

The slope of the regression line is calculated using the formula,

b1=SxySxx=2010=2

The standard error of the estimate is calculated using the formula:

Se=SSEn-2=65-2=1.414213562≈1.41

04

Part(a) Step 4: Final Answer

We need to find the value of test statistic

t=b1se/Sxx=21.41/10=20.44588115=4.485500227≈4.49

The test statistic's value is t=4.49, as shown above. The p-value is the probability of seeing a value of tof 4.49or more in magnitude if the null hypothesis is true because the test is two-tailed. We get P=0.0103by using technology.

Since the p-value =0.0103<α=0.10. We reject our null hypothesis H0.

05

Part(b) Step 1: Given Information

x04312y19843

y^=1+2x

06

Part(b) Step 2: Explanation

α=0.10for a 90%confidence interval. Since n=5,

df=n-2=5-2=3

From technology tα/2=t0.10/2=t0.05=2.355

The formula for computing the confidence interval endpoints for β1is

b1±tα/2×sesxx

We have b1=2,

se=1.41,

Sxx=10,

So, 2±2.355×1.4110

Or 2±1.050050108, or 0.949to3.050

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