Problem 26 BSC

Regression and Predictions. ExercisesÂ use the same data sets as Exercises in Section 10-2. In each case, find the regression equation, letting the first variable be the predictor (x) variable. Find the indicated predicted value by following the prediction procedure summarized in Figure.

Figure

Gas PricesÂ Using the data from the preceding exercise, find the best predicted price for mid-grade gas for a station that posted $2.78 as the price of regular gas. Is the result close to the actual price of $2.84 for mid-grade gas?

Problem 26 BSC

Answer:

Step1 of 3:

We have Exercises use the same data sets as Exercises in Section 10-2. In each case, find the regression equation, letting the first variable be the predictor (x) variable.

x | 3 | 2.77 | 2.89 | 2.93 | 2.93 | 2.96 | 2.86 | 2.91 |

y | 3.07 | 3.09 | 3 | 3.06 | 3.03 | 3.06 | 3.02 | 3.03 |

Step2 of 3:

We need to Find the indicated predicted value by following the prediction procedure summarized in Figure and find the best predicted price for mid-grade gas for a station that posted $2.78 as the price of regular gas. Is the result close to the actual price of $2.84 for mid-grade gas?

Step3 of 3:

Consider,

...x | y | xy | |

3 | 3.07 | 9.21 | 9 |

2.77 | 3.09 | 8.5593 | 7.6729 |

2.89 | 3 | 8.67 | 8.3521 |

2.93 | 3.06 | 8.9658 | 8.5849 |

2.93 | 3.03 | 8.8779 | 8.5849 |

2.96 | 3.06 | 9.0576 | 8.7616 |

2.86 | 3.02 | 8.6372 | 8.1796 |

2.91 | 3.03 | 8.8173 | 8.4681 |

23.25 | 24.36 | 70.7951 | = 67.6041 |