DISC 203 Practice Question Chapter 11

Suppose you have the following five observations on x (independent variable) and y
(dependent variable).

x y

-1 -1

0 1

1 2

2 4

3 5

(a)Estimate the slope of the best fit line.

(b) Estimate the intercept of the best fit line.
(c) Write the equation of the best fit line.
(d) Estimate the standard error for the regression model.
(e) Estimate the standard error for the slope estimate.
(f) Estimate a 95% confidence interval for the slope estimate.
(g) Test whether x has a statistically significant effect on y.
(h) Estimate the R2 for this model.
(i) Estimate the value of y based on your model when x=2.5. Calculate a 95% (i) prediction
interval and (ii) confidence interval for your estimate. (Check out the formulas for these
intervals in the book and the slides. Prediction interval is more relevant when you are giving
an estimate about a particular event and confidence interval is more relevant when you are
estimating an expected or average vale of y).

Do the estimations in R and cross check your answers.