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To help consumers in purchasing a laptop computer, a Consumer Reports researcher calculates an overall test score for each computer tested, based upon rating factors
To help consumers in purchasing a laptop computer, a Consumer Reports researcher calculates an overall test score for each computer tested, based upon rating factors such as ergonomics, portability, performance, display, and battery life. The following Microsoft Excel output analysis of the data shows the retail price and the overall score for 23 14-inch models (Consumer Reports website). Use these results to answer the questions on the next page. Cost Versus Overall Test Scores of Laptop Computers Overall Test Score 450 550 650 750 850 950 1050 1150 1250 1350 Price in $ SUMMARY OUTPUT Multiple R 0.831229 R Square 0.690942 Adjusted R Square 0.676225 Standard Error 4.298479 Observations 23 Coefficients Standard Error t Stat P-value Intercept 48.77054 3.987214 12.23173 5.11E-11 Price ($) 0.02741 0.004 6.851895 8.98E-07Question 7 (continued) a. Write down the least-squares regression equation and interpret its slope in the context of the data. b. Using the regression model equation obtained in part (a), predict the overall test score for a 14-inch laptop computer model that retails at a price of $1150. C. Use the information from the Excel output to test (at a 5% level of significance) whether the slope of the linear regression model is different from 0. Include the Hypothesis, Test Statistic, Decision, and Conclusion
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