Nowadays, there is a wide range of digital cameras available with many differentfeatures and price tags. The following table lists the prices and effective megapixels of some of these cameras. Suppose a potential buyer is interested in finding out if there is a positive relationship between effective megapixels and price.
a) Using thesedata, perform a simple regression analysis to predict the price of a digital camera using the number of effective megapixels. Interpret the slope term and state whether it is consistent with the buyer's prior belief.
b) Discuss the r2 and se. Several of these cameras have a resolution of 10 effective megapixels, but their price varies significantly from $999 to $2199. Provide an intuitive explanation as to why this might be the case.
| Model |
Price ($) |
Effective magapixels |
| Canon PowerShot S5IS |
599 |
8 |
| Canon EQS 400 D + 18-55 mm EFS |
1199 |
10.1 |
| Canon EQS 400 D + 17-85 mm EFS IS USM |
2799 |
10.1 |
| Fujifilm Finepix S8000fd |
649 |
8 |
| Kodak Easyshare ZD170 |
299 |
7.1 |
| Nikon D80 DX 18-70 mm |
2198 |
10 |
| Nikon D40x Kit DX 18-55 mm EDII |
999 |
10 |
| Olympus E-140 Kit + 14-42 mm ED |
999 |
10 |
| Olympus E-510 Kit + 14-42 mm ED |
1299 |
10 |
| Olympus SP-560UZ |
599 |
8 |
| Panasonic Lumix DMC-L10 + Leica D14-50 mm |
2199 |
10 |
| Panasonic Lumix DMC-FZ18 |
769 |
8 |
| Sony Alpha DSLR-A700 + 18-70 mm DT |
2399 |
12.2 |