Ds 533 Fall 2004 Exam # 3

Mid-Valley Travel Agency (MVTA) has offices in 12 cities. The company believes that its monthly airline bookings are related to the mean income in those cities and has collected the following data:

Location	Bookings	Income
1	1098	43299
2	1131	45021
3	1120	40290
4	1142	41893
5	971	30620
6	1403	48105
7	855	27482
8	1054	33025
9	1081	34687
10	982	28725
11	1098	37892
12	1387	46198

The data are analyzed using regression analysis. The partial computer output is given below:

1. 
   What is the estimated least square regression line?
   

2. 
   What is the standard error of the estimate?
   

3. 
   Forecast the number of bookings when the mean income is $51385.
   

4. 
   Test the significance of the regression coefficient at the 5% level (state the null and alternative hypothesis, the value of your test statistic, the p-value or the decision rule, and your conclusion).
   

H₀ : ₁ = 0

P-value < 2(.005) = .01

Mean income is a significant predictor of the air line bookings.

5. 
   Give an interval estimate of ₁ with a 95% confidence coefficient.