A linear regression model predicts weekly revenue from ad spending. You find the prediction interval for exactly in ad spending is . Choose the answer that best describes what this interval means.
Table of contents
- 1. Intro to Stats and Collecting Data1h 14m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically2h 5m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables3h 6m
- 6. Normal Distribution and Continuous Random Variables2h 11m
- 7. Sampling Distributions & Confidence Intervals: Mean3h 23m
- Sampling Distribution of the Sample Mean and Central Limit Theorem19m
- Distribution of Sample Mean - Excel23m
- Introduction to Confidence Intervals15m
- Confidence Intervals for Population Mean1h 18m
- Determining the Minimum Sample Size Required12m
- Finding Probabilities and T Critical Values - Excel28m
- Confidence Intervals for Population Means - Excel25m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 25m
- 9. Hypothesis Testing for One Sample3h 29m
- 10. Hypothesis Testing for Two Samples4h 50m
- Two Proportions1h 13m
- Two Proportions Hypothesis Test - Excel28m
- Two Means - Unknown, Unequal Variance1h 3m
- Two Means - Unknown Variances Hypothesis Test - Excel12m
- Two Means - Unknown, Equal Variance15m
- Two Means - Unknown, Equal Variances Hypothesis Test - Excel9m
- Two Means - Known Variance12m
- Two Means - Sigma Known Hypothesis Test - Excel21m
- Two Means - Matched Pairs (Dependent Samples)42m
- Matched Pairs Hypothesis Test - Excel12m
- 11. Correlation1h 24m
- 12. Regression1h 50m
- 13. Chi-Square Tests & Goodness of Fit2h 21m
- 14. ANOVA1h 57m
12. Regression
Prediction Intervals
Problem 9.R.20
Textbook Question
"In Exercises 19-24, construct the indicated prediction interval and interpret the results.
20. Construct a 90% prediction interval for the average time adults ages 35 to 44 spend per day watching television in Exercise 10 when the average time adults ages 25 to 34 spend per day watching television is 2.25 hours."
Verified step by step guidance1
Identify the regression equation from Exercise 10, which relates the average time adults ages 25 to 34 spend watching television (independent variable, x) to the average time adults ages 35 to 44 spend watching television (dependent variable, y). This equation typically has the form: .
Calculate the predicted average time for adults ages 35 to 44 by substituting hours into the regression equation to find .
Determine the standard error of the prediction, which accounts for both the variability of the estimate of the mean response and the variability of individual observations around the regression line. This involves using the formula for the prediction interval standard error: , where is the standard error of the estimate, is the sample size, is the mean of the x-values, and is 2.25.
Find the critical t-value for a 90% prediction interval with degrees of freedom equal to . This value comes from the t-distribution table and reflects the desired confidence level.
Construct the 90% prediction interval using the formula: . This interval estimates the range in which an individual adult aged 35 to 44 is expected to spend watching television, given the average time for adults aged 25 to 34 is 2.25 hours.
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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Prediction Interval
A prediction interval estimates the range within which a single new observation is expected to fall, with a specified level of confidence. Unlike confidence intervals for means, prediction intervals account for both the variability in the sample mean and the individual data points, making them wider and more appropriate for predicting individual outcomes.
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Confidence Level
The confidence level, such as 90%, represents the probability that the interval constructed from sample data contains the true value of the parameter or future observation. A 90% prediction interval means we are 90% confident that the new observation will lie within the calculated range.
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Regression and Prediction Using Independent Variables
When predicting a response variable based on an independent variable, regression analysis models the relationship between them. Using the regression equation, we can estimate the expected value and construct prediction intervals for new observations at given predictor values, accounting for uncertainty in the estimate.
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