Look back at the prices for the external disk drives we saw in Exercise 10. The least squares line is Price = 15.112 + 62.417 Capacity.

The assumptions and conditions for regression are met.
SE(b1) = 11.328
a) Disk drives keep growing in capacity. Some tech experts now talk about Petabyte (PB = 1000 TB = 1,000,000 GB) drives. What does this model predict that a Petabyte capacity drive will cost?
b) Find a 95% prediction interval for the price of a 1 PB drive.
c) Are these predictions likely to be useful? Explain. Chapter Exercises

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Capacity (TB) 0.15 0.25 0.32 Price (S) 35 39.95 49.95 75 110 140 325 110.7 102.05 Mean SD 1.53 1.51