Mint Specs Listed below are weights (grams) from a simple random sample of pennies produced after 1983 (from Data Set 40 “Coin Weights” in Appendix B). Construct a 95% confidence interval estimate of for the population of such pennies. What does the confidence interval suggest about the U.S. Mint specifications that now require a standard deviation of 0.0230 g for weights of pennies?
Table of contents
- 1. Intro to Stats and Collecting Data55m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically1h 45m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables2h 33m
- 6. Normal Distribution and Continuous Random Variables1h 38m
- 7. Sampling Distributions & Confidence Intervals: Mean1h 53m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 12m
- 9. Hypothesis Testing for One Sample2h 19m
- 10. Hypothesis Testing for Two Samples3h 22m
- 11. Correlation1h 6m
- 12. Regression1h 4m
- 13. Chi-Square Tests & Goodness of Fit1h 20m
- 14. ANOVA1h 0m
7. Sampling Distributions & Confidence Intervals: Mean
Introduction to Confidence Intervals
Problem 10.2.14
Textbook Question
Regression and Predictions
Exercises 13–28 use the same data sets as Exercises 13–28 in Section 10-1.
Find the regression equation, letting the first variable be the predictor (x) variable.
Find the indicated predicted value by following the prediction procedure summarized in Figure 10-5.
Powerball Jackpots and Tickets Sold Listed below are the same data from Table 10-1 in the Chapter Problem, but an additional pair of values has been added from actual Powerball results. (Jackpot amounts are in millions of dollars, ticket sales are in millions.) Find the best predicted number of tickets sold when the jackpot was actually 345 million dollars. How does the result compare to the value of 55 million tickets that were actually sold?


1
Step 1: Organize the data into two variables: the predictor variable (x), which is the jackpot amounts, and the response variable (y), which is the number of tickets sold.
Step 2: Calculate the mean and standard deviation for both the x (jackpot amounts) and y (tickets sold) variables. These values are needed to compute the regression equation.
Step 3: Compute the correlation coefficient (r) using the formula: r = (Σ((x_i - x̄)(y_i - ȳ))) / (sqrt(Σ(x_i - x̄)^2) * sqrt(Σ(y_i - ȳ)^2)). This measures the strength and direction of the linear relationship between x and y.
Step 4: Use the formula for the slope (b) of the regression line: b = r * (s_y / s_x), where s_y and s_x are the standard deviations of y and x, respectively. Then calculate the y-intercept (a) using the formula: a = ȳ - b * x̄.
Step 5: Substitute the given jackpot value (345 million dollars) into the regression equation y = a + b * x to predict the number of tickets sold. Compare the predicted value to the actual value of 55 million tickets sold.

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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Regression Equation
A regression equation is a mathematical representation that describes the relationship between a dependent variable and one or more independent variables. In this context, the jackpot amount serves as the independent variable (x), while the number of tickets sold is the dependent variable (y). The equation typically takes the form y = mx + b, where m is the slope and b is the y-intercept, allowing predictions of y based on given x values.
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Predictor Variable
The predictor variable, also known as the independent variable, is the variable that is manipulated or controlled to observe its effect on another variable. In this scenario, the jackpot amount is the predictor variable, as it is used to predict the number of tickets sold. Understanding the role of the predictor variable is crucial for establishing the direction and strength of the relationship in regression analysis.
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Predicted Value
A predicted value is the outcome generated by a regression equation when a specific value of the predictor variable is inputted. In this case, to find the predicted number of tickets sold when the jackpot is 345 million dollars, one would substitute this value into the regression equation. Comparing this predicted value to the actual number of tickets sold provides insights into the accuracy of the model and the relationship between the variables.
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