# Baldwin Computer

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Submitted By wrandie4
Words 9902
Pages 40
CHAPTER EXERCISES

15.69 d/p/m
a. The monthly mortgage payment would likely be directly related to the market value of the house, the interest rate, the size of the house, or the monthly taxes and insurance, among other variables.
b. The monthly mortgage payment would likely be inversely related to the age of the house, among other variables.
c. The monthly mortgage payment would likely be unrelated to the amount of chocolate consumed by the owners, and a wide variety of other variables.

15.70 d/p/m A personal variable that might be directly related to freshman grade point average is high school grade point average. A personal variable that might be inversely related to freshman grade point average is number of times arrested during high school.

15.71 p/a/m The least-squares equation is NetIncome = 0.21 + 0.0999*TotRev. For each additional \$billion of total revenue, the equation would estimate an increase of \$0.0999 billion in the company’s net income. Note that the p-value is not very impressive, 0.174, and the slope of the population regression equation could very easily be 0, at least based on this sample of years. For a year in which total revenues are \$18 billion, the equation would estimate net income as \$2.009 billion. The Minitab printout is shown below.

Regression Analysis: NetIncome versus TotRev

The regression equation is NetIncome = 0.21 + 0.0999 TotRev

Predictor Coef SE Coef T P
Constant 0.211 1.041 0.20 0.846
TotRev 0.09990 0.06475 1.54 0.174

S = 0.482407 R-Sq = 28.4% R-Sq(adj) = 16.5%

Analysis of Variance
Source DF SS MS F P
Regression 1 0.5539 0.5539 2.38 0.174
Residual Error 6 1.3963 0.2327
Total 7 1.9502

Predicted Values for New Observations
New
Obs Fit SE Fit 95% CI 95% PI 1 2.009 0.220

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