Math Solutions

(Steps Shown) In a random sample of eight military contracts involving cost overruns, the following information was obtained. x = big price of the contract

Question:

In a random sample of eight military contracts involving cost overruns, the following information was obtained. x = big price of the contract (in millions of dollars) and y = cost of overrun (expressed as a percent of the bid price).

x 6 10 3 5 9 18 16 21
y 31 25 39 35 29 12 17 8
  1. Draw the scatter diagram for this data.
  2. Find the slope, b, and the intercept, a, for the least-squares line. Write the equation of the least-squares line.
  3. Graph the least-squares line on your scatter diagram.
  4. If an overrun contract was bid at 12 million dollars, what does the least-squares line predict for the cost of overrun (as a percent of bid price)?

a) Draw the scatter diagram for this data.

b) Find the slope, b, and the intercept, a, for the least-squares line. Write the equation of the least-squares line.

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 42.99013 0.888167 48.40321 5.21E-09 40.81686 45.1634
x -1.68092 0.070436 -23.8644 3.56E-07 -1.85327 -1.50857

This means that the least squares equation is given by:

Y = 42.99-1.681*X

c) Graph the least-squares line on your scatter diagram.

d) If an overrun contract was bid at 12 million dollars, what does the least-squares line predict for the cost of overrun (as a percent of bid price)?

Price: $2.99
Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document


∴ Other downloads you may be interested in ∴

log in to your account

Forgot password?
Don't have a membership account?
REGISTER

reset password

Back to
log in

sign up

Back to
log in