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Prices of recycled materials. Prices of recycled materials
Chapter 11, Problem 91E(choose chapter or problem)
Problem 91E
Prices of recycled materials. Prices of recycled materials (e.g., plastics, paper, and glass) are highly volatile due to the fact that supply is constant, rather than tied to demand. An exploratory study of the prices of recycled products in the United Kingdom was published in Resources, Conservation, and Recycling (Vol. 60, 2012). The researchers employed simple linear regression to model y = the monthly price of recycled colored plastic bottles as a function of x = the monthly price of naphtha (a primary material in plastics). The following results were obtained for monthly data collected over a recent 10-year period ( n = 120 months):
Use this information to conduct the first four steps of a complete simple linear regression analysis. Give your conclusions in the words of the problem.
Questions & Answers
QUESTION:
Problem 91E
Prices of recycled materials. Prices of recycled materials (e.g., plastics, paper, and glass) are highly volatile due to the fact that supply is constant, rather than tied to demand. An exploratory study of the prices of recycled products in the United Kingdom was published in Resources, Conservation, and Recycling (Vol. 60, 2012). The researchers employed simple linear regression to model y = the monthly price of recycled colored plastic bottles as a function of x = the monthly price of naphtha (a primary material in plastics). The following results were obtained for monthly data collected over a recent 10-year period ( n = 120 months):
Use this information to conduct the first four steps of a complete simple linear regression analysis. Give your conclusions in the words of the problem.
ANSWER:
Step 1 of 7
Step 1
The hypothesized straight line probabilistic model is given below:
Where, y denotes the response variable (monthly price of recycled colored plastic bottles).
x denotes the predictor variable (monthly price of naptha).
