Data given below are on the adjusted gross income x and the amount of itemized deductions taken by taxpayers. Data were reported in thousands of dollars. With the estimated regression equation = 4.68 +0.16x, the point estimate of a reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $52,500 is $13,080. Click on the datafile to reference the data. Excel File: data 14-37.xlsx Adjusted Gross Reasonable Amount of Itemized Income ($1000s) Deductions ($1000s) 22 9.6 27 9.6 32 10.1 48 11.1 65 13.5 85 120 17.7 25.5 Use the estimated regression coefficients rounded to 2 decimals in your calculations. Round all intermediate calculations to 2 decimals. $ thousand a. Develop a 95% confidence interval for the mean amount of total itemized deductions for all taxpayers with an adjusted gross income of $52,500 (to 2 decimals). thousand to $ b. Develop a 95% prediction interval estimate for the amount of total itemized deductions for a particular taxpayer with an adjusted gross income of $52,500 (to 2 decimals). thousand to $ $ thousand c. If the particular taxpayer referred to in part (b) claimed total itemized deductions of $20,400, would the IRS agent's request for an audit appear to be justified? - Select your answer - V it is -Select your answer - than anticipated. d. Use your answer to part (b) to give the IRS agent a guideline as to the amount of total itemized deductions a taxpayer with an adjusted gross income of $52,500 should claim before an audit is recommended (to the nearest whole number). Any deductions exceeding the $ upper limit could suggest an audit. The Wall Street Journal asked Concur Technologies, Inc., an expense management company, to examine data from 8.3 million expense reports to provide insights regarding business travel expenses. Their analysis of the data showed that New York was the most expensive city. The following table shows the average daily hotel room rate (x) and the average amount spent on entertainment (y) for a random sample of 9 of the 25 most-visited U.S. cities. These data lead to the estimated regression equation = 17.49 + 1.0334x. For these data SSE = 1541.4. Click on the datafile logo to reference the data. Use Table 1 of Appendix B. DATA file Room Rate Entertainment City Boston ($) ($) 148 161 Denver 96 105 Nashville 91 101 New Orleans 110 142 Phoenix 90 100 San Diego 102 120 San Francisco San Jose Tampa 136 167 90 140 82 98 a. Predict the amount spent on entertainment for a particular city that has a daily room rate of $89 (to 2 decimals). $ b. Develop a 95% confidence interval for the mean amount spent on entertainment for all cities that have a daily room rate of $89 (to 2 decimals). to $ $ c. The average room rate in Chicago is $128. Develop a 95% prediction interval for the amount spent on entertainment in Chicago (to 2 decimals). to $ $ Following is a portion of the regression output for an application relating maintenance expense (dollars per month) to usage (hours per week) for a particular brand of computer terminal. Excel File: data14-41.xlsx ANOVA df SS MS F Significance F Regression 1 1575.76 Residual Total 8 349.14 9 1924.90 Coefficients Standard Error t Stat P-value Intercept Usage 6.1092 0.8951 0.9361 0.149 If your answer is zero, enter "0". a. Write the estimated regression equation (to 4 decimals). = + x b. Use a t test to determine whether monthly maintenance expense is related to usage at the 0.05 level of significance (to 2 decimals). Use Table 2 of Appendix B. t = p-value = - Select your answer the null hypothesis. Monthly maintenance expense - Select your answer - related to usage. c. Did the estimated regression equation provide a good fit? Explain. Hint: If r is greater than 0.50, the estimated regression equation provides a good fit. - Select your answer - because the value of r is - Select your answer - than 0.50.