The simple linear regression model provides a very good fit to the data on rainfall and runoff
Question:
The simple linear regression model provides a very good fit to the data on rainfall and runoff volume given in Exercise 16 of Section 12.2. The equation of the least squares line is
, and .
a. Use the fact that when rainfall volume is 40 m3 to predict runoff in a way that conveys information about reliability and precision. Does the resulting interval suggest that precise information about the value of runoff for this future observation is available? Explain your reasoning.
b. Calculate a PI for runoff when rainfall is 50 using the same prediction level as in part (a). What can be said about the simultaneous prediction level for the two intervals you have calculated?
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