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The following data give information on the ages (in years) and
the number of breakdowns during the past month of a sample of seven
machines at a large company.
Age of Machines 12 7 2 8 13 9 4
No. of Breakdowns 9 5 1 4 11 7 2
Case 1 – Number 2
a.) What is the independent variable? What is the dependent variable?
b.) Do you expect β to be negative or positive? Why?
c.) Fit a least squares line from which we can predict number of breakdowns
in terms of the age. Is the sign of b as you hypothesized for β?
d.) Plot a scatter diagram of the data and superimpose the regression line.
e.) Give a brief interpretation of the values a and b.
f.) Construct a 95% confidence interval for β and explain in words what
quantity is thus being estimated.
g.) Determine the coefficient of determination and interpret.
Solution
• Age of Machines – Independent Variable
• No. of Breakdown – Dependent Variable
Age of Machines 12 7 2 8 13 9 4
(x)
No. of Breakdowns 9 5 1 4 11 7 2
(y)
No. of Breakdowns vs. Age of Machines
12
Number of Breakdowns
10
y = 0.8916x - 1.4337
R² = 0.9459
8
6
Series1
4 Linear (Series1)
0
0 2 4 6 8 10 12 14
Age of Machine
No. of Breakdowns vs. Age of Machines
12
Number of Breakdowns
10
y = 0.8916x - 1.4337
R² = 0.9459
8
0
0 2 4 6 8 10 12 14
Age of Machine
No. of Breakdowns vs. Age of Machines
12
Number of Breakdowns
10
y = 0.8916x - 1.4337
R² = 0.9459
8
0
0 2 4 6 8 10 12 14
Age of Machine
No. of Breakdowns vs. Age of Machines
12
Number of Breakdowns
10
y = 0.8916x - 1.4337
R² = 0.9459
8
Regression Statistics
Multiple R 0.972569325
R Square 0.945891091
Adjusted R Square 0.935069309
Standard Error 0.928789859
Observations 7
SUMMARY OUTPUT FROM EXCEL
ANOVA
df SS MS F Significance F
Regression 1 75.4010327 75.40103 87.40623 0.000235848
Residual 5 4.313253012 0.862651
Total 6 79.71428571
SUMMARY OUTPUT FROM EXCEL