Home » Bicycling world, a magazine devoted to cycling, reviews hundreds of

# Bicycling world, a magazine devoted to cycling, reviews hundreds of

Bicycling World, a magazine devoted to cycling, reviews   hundreds of bicycles throughout the year. Its “Road-Race” category   contains reviews of bicycles used by riders primarily interested in racing.   One of the most important factors in selecting a bicycle for racing is the   weight of the bicycle. The following data show the weight (pounds) and price   (\$) for ten racing bicycles reviewed by the magazine.   Model Weight (lb) Price (\$)      Fierro 7B 17.9 2,200      HX 5000 16.2 6,350      Durbin Ultralight 15 8,470      Schmidt 16 6,300      WSilton Advanced 17.3 4,100      Bicyclette vélo 13.2 8,700      Supremo Team 16.3 6,100      XTC Racer 17.2 2,680      D’Onofrio Pro 17.7 3,500      Americana #6 14.2 8,100          A. Develop a   scatter chart with weight as the independent variable. What does the scatter   chart indicate about the relationship between the weight and price of these   bicycles?   B. Use the   data to develop an estimated regression equation that could be used to   estimate the price for a bicycle, given its weight. What is the estimated   regression model?   C. Test   whether each of the regression parameters  and  is equal   to zero at a 0.05 level of significance. What are the correct interpretations   of the estimated regression parameters? Are these interpretations reasonable?   D. How much   of the variation in the prices of the bicycles in the sample does the   regression model you estimated in part b explain?   E. The   manufacturers of the D’Onofrio Pro plan to introduce the 15-pound D’Onofrio   Elite bicycle later this year. Use the regression model you estimated in part   a to predict the price of the D’Ononfrio Elite.

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