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Please help me understand how I can answer this question. I really appreciate your help Q1: Using data in example 7.6, find the 95 percent

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Please help me understand how I can answer this question. I really appreciate your help

Q1: Using data in example 7.6, find the 95 percent confidence region for beta and the simultaneous 95 percent confidence intervals for beta_i, i=0,1,2. Example 7.6 (Interval estimates for a mean response and a future response) Companies considering the purchase of a computer must first assess their future needs in order to determine the proper equipment. A computer scientist collected data from seven similar company sites so that a forecast equation of computer hardware requirements for inventory management could be developed. The data are given in Table 7.3 for 21 = customer orders (in thousands) Z2 = add-delete item count (in thousands) Y = CPU (central processing unit) time in hours) Construct a 95% confidence interval for the mean CPU time, E(Y|zo) Bo + B1201 + B2202 at zo = [1, 130, 7.5). Also, find a 95% prediction interval for a new facility's CPU requirement corresponding to the same zo. A computer program provides the estimated regression function = 8.42 + 1.0821 + .42z2 8.17969 (Z'Z) -.06411 .00052 .08831 -.00107 01440 = = and s = 1.204. Consequently, = 8.42 + 1.08(130) + .42(7.5) = 151.97 and sVz6(Z'z) +20 = 1.204.58928) = .71. We have t4(.025) = 2.776, so the 95% confidence interval for the mean CPU time at zo is zo + ta(.025)s Vz6(Z'z) *20 = 151.97 + 2.776.71) or (150.00, 153.94). Table 7.3 Computer Data 21 22 Y (Orders) (Add-delete items) (CPU time) 123.5 2.108 141.5 146.1 9.213 168.9 133.9 1.905 154.8 128.5 .815 146.5 151.5 1.061 172.8 136.2 8.603 160.1 92.0 1.125 108.5 Source: Data taken from H. P. Artis, Forecasting Computer Requirements: A Forecaster's Dilemma (Piscataway, NJ: Bell Laboratories, 1979). Model Checking and Other Aspects of Regression 381 Since sV1 + z.(Z'Z) *20 = (1.204)(1.16071) = 1.40, a 95% prediction inter- = val for the CPU time at a new facility with conditions zo is ze + t4.025)s V1 + zb(Z'Z) '20 = 151.97 + 2.776(1.40) or (148.08, 155.86). Q1: Using data in example 7.6, find the 95 percent confidence region for beta and the simultaneous 95 percent confidence intervals for beta_i, i=0,1,2. Example 7.6 (Interval estimates for a mean response and a future response) Companies considering the purchase of a computer must first assess their future needs in order to determine the proper equipment. A computer scientist collected data from seven similar company sites so that a forecast equation of computer hardware requirements for inventory management could be developed. The data are given in Table 7.3 for 21 = customer orders (in thousands) Z2 = add-delete item count (in thousands) Y = CPU (central processing unit) time in hours) Construct a 95% confidence interval for the mean CPU time, E(Y|zo) Bo + B1201 + B2202 at zo = [1, 130, 7.5). Also, find a 95% prediction interval for a new facility's CPU requirement corresponding to the same zo. A computer program provides the estimated regression function = 8.42 + 1.0821 + .42z2 8.17969 (Z'Z) -.06411 .00052 .08831 -.00107 01440 = = and s = 1.204. Consequently, = 8.42 + 1.08(130) + .42(7.5) = 151.97 and sVz6(Z'z) +20 = 1.204.58928) = .71. We have t4(.025) = 2.776, so the 95% confidence interval for the mean CPU time at zo is zo + ta(.025)s Vz6(Z'z) *20 = 151.97 + 2.776.71) or (150.00, 153.94). Table 7.3 Computer Data 21 22 Y (Orders) (Add-delete items) (CPU time) 123.5 2.108 141.5 146.1 9.213 168.9 133.9 1.905 154.8 128.5 .815 146.5 151.5 1.061 172.8 136.2 8.603 160.1 92.0 1.125 108.5 Source: Data taken from H. P. Artis, Forecasting Computer Requirements: A Forecaster's Dilemma (Piscataway, NJ: Bell Laboratories, 1979). Model Checking and Other Aspects of Regression 381 Since sV1 + z.(Z'Z) *20 = (1.204)(1.16071) = 1.40, a 95% prediction inter- = val for the CPU time at a new facility with conditions zo is ze + t4.025)s V1 + zb(Z'Z) '20 = 151.97 + 2.776(1.40) or (148.08, 155.86)

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