1. Statistics 350 Lecture 6

2. Today Last Day: 2.3-2.6 Today: Example computations Homework #2: Chapter 2 Problems (page 89-99): 2, 3, 4, 7, 51, 54 Due: January 26 Read Sections 2.1-2.6

3. Return to the Apartment Example Useful sums:

4. Return to the Apartment Example MSE Interpretation of MSE:

5. Return to the Apartment Example 95% confidence interval for  0 How is this interpreted?

6. Return to the Apartment Example 95% confidence interval for  1 Interpretation

7. Return to the Apartment Example Test whether slope is statistically significant Conclusion:

8. Return to the Apartment Example Suppose the national average for the rent-area relationship is 0.90 $/ft 2 A group of local landlords believe that their rents increase at a faster rate per square foot than the national average Test this hypothesis at a level of 0.05

9. Return to the Apartment Example Test the hypothesis that the intercept is 0

10. Return to the Apartment Example Find 95% confidence intervals for the mean rent for 750 and 1,000 square feet

11. Return to the Apartment Example Find 95% intervals for the rent of randomly selected 750 and 1,000 square feet apartments

12. Return to the Apartment Example Suppose that the local average rent for a 600 square foot apartment in Victoria is $1250 Test the hypothesis that this mean is the same as the local mean rent for this type of apartment