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Suppose you are interested in buying a new Lincoln Navigator or Town Car. You are standing on the sales lot looking at a model with
Suppose you are interested in buying a new Lincoln Navigator or Town Car. You are standing on the sales lot looking at a model with different options. The list price is on the vehicle. As a er invoice price is for this model with its options. The following data are based on a random selection of these cars of different models and options. Let y be the dealer invoice (in thousands of dollars) for the given vehicle. 31.6 33.3 36.1 44.0 47.8 30.8 31.0 32.0 42.1 42.2 (a) Verify that Ex = 192.8, Zy = 178.1, Ex? = 7631.5, Zy = 6486.89, Exy = 7030.34, and r * 0.970. (b) Use a 109% level of significance to test the claim that p > 0. (Use 2 decimal places.) critical Conclusion O Reject the null hypothesis, there is sufficient evidence that p > 0. O Reject the null hypothesis, there is insufficient evidence that p > 0. O Fail to reject the null hypothesis, there is insufficient evidence that p > 0. O Fail to reject the null hypothesis, there is sufficient evidence that p > 0. (c) Verify that S,, * 1.6847, a * 3.7747, and b * 0.8259. d) Find the predicted dealer invoice when the list price is x = 34 (thousand dollars). (Use 2 decimal places.) (e) Find a 90% confidence interval for y when x = 34 (thousand dollars). (Use 2 decimal place.) lower limit upper limit (F) Use a 10% level of significance to test the claim that p > 0. (Use 2 decimal places.) critical Conclusion O Reject the null hypothesis, there is sufficient evidence that ( > 0. O Reject the null hypothesis, there is insufficient evidence that B > 0. O Fail to reject the null hypothesis, there is insufficient evidence that B > 0. O Fail to reject the null hypothesis, there is sufficient evidence that 8 > 0. (g) Find a 909% confidence interval for & and interpret its meaning. (Use 3 decimal places.) lower limit upper limit Interpretation O For every $1,000 increase in list price, the dealer price increases by an amount that falls within the confidence interval. O For every $1,000 increase in list price, the deal cases by an amount that falls outside the confidence interval. O For every $1,000 increase in list price ases by an amount that falls within the confidence interval. O For every $1,000 increase in list price, the dealer price increases by an amount that falls outside the confidence interval
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