Nowadays, there are a wide range of digital cameras available with many different features and price tags. The following table lists the prices and effective megapixels of some of these cameras. Suppose a potential buyer is interested in finding out if there is a positive relationship between effective megapixels and price. Using these data, perform a simple regression analysis to predict the price of a digital camera using the number of effective megapixels. Interpret the slope term and state whether it is consistent with the buyer?s prior belief. Discuss the r² and s_e. Several of these cameras have a resolution of 10 effective megapixels, but their price varies significantly from $999 to $2199. Provide an intuitive explanation as to why this might be the case.

Transcribed Image Text:

Price (S) Effective megapixels Model Canon PowerShot S5IS 599 Canon EQS 400D+18-55 mm EFS Canon EQS 400D+17-85 mm EFS IS USM 1199 2799 10.1 10.1 Fujifilm Finepix S8000fd Kodak Easyshare ZD170 649 299 7.1 Nikon D80 DX 18-70 mm 2198 999 10 Nikon D40x Kit DX 18-55 mm EDII 10 Olympus E-140 Kit + 14–42 mm ED Olympus E-510 Kit + 14-42 mm ED Olympus SP-560UZ 999 10 10 1299 599 8. Panasonic Lumix DMC-L10+Leica D14-50 mm 2199 10 Panasonic Lumix DMC-FZ18 769 Sony Alpha DSLR-A700+ 18-70 mm DT 2399 12.2