(Answered) An analyst would like to predict water consumption in a

Management Studies

An analyst would like to predict water consumption in a city based on daily temperature. She has gathered the following data for a random sample of n=7 days.

Temperature Water Consumption

(x) (million gallons) (y)

40 225

5 25

25 150

15 100

10 75

30 125

35 175

Ex=160, Ey=875, SSxx=1042.857, SSyy=26250, SSxy=5000

a) Describe the type of relationship that would be expected between temperature and water consumption.

b) Test at the 2.5% level of significance whether B is positive. Use the critical value approach. Assume sb=0.6609

c) Construct a 90% prediction interval for the water consumption on a particular day when the temperature is 28 degrees Celsius. Assume Se= 21.34

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