Question 16 Questions 16-25 refer to the following setting. An auto manufacturing company wanted to investigate how the price of one of its car models depreciates with age. The research department at the company took a sample of eight cars of this model and collected the following information on the ages (in years) and prices (in hundreds of dollars) of these cars. Age 8 3 6 9 2 5 6 3 Price 45 210 100 33 267 134 109 235 You should first use the formulas from class notes (or from the textbook) to find the solutions to the following questions on paper: (1) the least square regression line with price as dependent variable and age as independent variable = a + bx (2) calculate the standard deviation of errors s, and standard deviation of b: sp (3) calculate the correlation coefficient r and the coefficient of determination 1- (4) construct a 95% confidence interval (5) test at the 5% significance level whether the slope B is negative Question 22 Refer to the data in Question 16. Find the standard deviation S, of b. (A) 2.3976 (B) 2.9367 (C) 3.2976 (D) 3.9276 Question 23 Refer to the data in Question 16. Construct a 95% confidence interval for the slope B. (A) (-41.30,-28.85) (C) (-40.31,-28.58) (B) (-43.01,-25.88) (D) (-40.31, 28.58) Question 24 Refer to the data in Question 16. Test at the 5% significance level whether the slope of the least square regression line is negative. What is critical value? (A)-1.943 (B) 1.943 (C) -1.895 (D) 1.895 Question 25 Refer to the data in Question 16. Test at the 5% significance level whether the slope of the least square regression is line negative. What is the value of the test statistic? (A) 14.365 (B)-14.365 (C) 13.645 (D) -13.645