Math Problem Statement

The table below gives the list price and the number of bids received for five randomly selected items sold through online auctions. Using this data, consider the equation of the regression line, yˆ=b0+b1x , for predicting the number of bids an item will receive based on the list price. Keep in mind, the correlation coefficient may or may not be statistically significant for the data given. Remember, in practice, it would not be appropriate to use the regression line to make a prediction if the correlation coefficient is not statistically significant.

Price in Dollars 23 26 28 34 49 Number of Bids 1 2 5 9 10 Table

Step 2 of 6 : Find the estimated y-intercept. Round your answer to three decimal places.

Solution

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Math Problem Analysis

Mathematical Concepts

Linear Regression
Correlation
Simple Linear Regression
Statistics

Formulas

ŷ = b0 + b1x
b0 = ȳ - b1x̄
b1 = Σ(xi - x̄)(yi - ȳ) / Σ(xi - x̄)²

Theorems

Least Squares Regression
Correlation Coefficient

Suitable Grade Level

Grades 9-12