See data file attached.
A brokerage house wants to predict the number of trade executions per day, using the number of incoming phone calls as a predictor variable. Data were collected over a period of 35 days and are stored in the file trades.xls.
a. Use the least-squares method to compute the regression coefficients b0 and b1.
b. Interpret the meaning of b0 and b1 in this problem.
c. Predict the number of trades executed for a day in which the number of incoming calls is 2,000.
d. Should you use the model to predict the number of trades executed for a day in which the number of trades executed for a day in which the number of incoming call is 5,000? Why or why not?
e. Determine coefficient of determination, and explain its meaning in this problem.
j. Construct a 95% confidence interval estimate of the mean number of trades executed for days in which the number of incoming calls is 2,000.
k. Construct a 95% prediction interval of the number of trades executed for a particular day in which the number of incoming calls is 2,000.
A Complete, Neat and Step-by-step Solution is provided in the attached file.
Regression Coefficient Tests and Confidence Intervals
Please answer the following questions:
(a) Explain why a confidence interval for the slope or intercept would be equivalent to a two-tailed hypothesis test.
(b) Why is it especially important to test for a zero slope?View Full Posting Details