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Linear regression questions

Please use Excel when necessary:

Management has collected data on the size of five work groups(X) and the number of complaints per month (Y) received by the organization from each group. A regression was run using as the independent variable the size of the work group(number of employees in the work group) to predict the number of registered complaints. Suppose the regression equation from the data is: Y = 2 + 2.25(X). Given a new work group that consisted of 8 employees, How many complaints could management expect?

a) 3
b) 10
c) 20
d) 16

If the level of confidence is decreased from 95% to 90%, the width of the corresponding confidence interval will:

a) be increased
b) be decreased
c) Stay the same
d) The level of confidence does not have an effect on the width of the interval

Solution Summary

This solution answers two questions about a given linear regression model along with detailed explanations.