Almost all U.S. light-rail systems use electric cars that run on tracks built at street level. The Federal Transit Administration claims light-rail is one of the safest modes of travel, with an accident rate of .99 accidents per million passenger miles as compared to 2.29 for buses. The following data show the miles of track and the weekday ridership in thousands of passengers for six light-rail systems (USA Today, January 7, 2003).

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1. Almost all U.S. light-rail systems use electric cars that run on tracks built at street
level. The Federal Transit Administration claims light-rail is one of the safest modes
of travel, with an accident rate of .99 accidents per million passenger miles as
compared to 2.29 for buses. The following data show the miles of track and the
weekday ridership in thousands of passengers for six light-rail systems (USA Today,
January 7, 2003).
City
Miles of Track
Ridership (1000s)
Cleveland
17
15
Denver
19
36
Portland
40
78
Sacramento
23
28
San Diego
50
75
San Jose
33
31
St. Lois
37
42
d) Develop a 95% confidence interval for the mean weekday ridership for all
light-rail systems with 30 miles of track.
e) Suppose that Charlotte is considering construction of a light-rail system with
30 miles of track. Develop a 95% prediction interval for the weekday
ridership for the Charlotte system. Do you think that the prediction interval
you developed would be of value to Charlotte planners in anticipating the
number of weekday riders for their new lightrail system? Explain.
Cautions: DO NOT use a regression analysis calculator (Excel, minitab, etc.). You can use a
calculator for step-by-step calculations like calculating means, sum of the deviations of
squares, e.g. but you are not allowed to use a whole regression analysis calculator.
Transcribed Image Text:1. Almost all U.S. light-rail systems use electric cars that run on tracks built at street level. The Federal Transit Administration claims light-rail is one of the safest modes of travel, with an accident rate of .99 accidents per million passenger miles as compared to 2.29 for buses. The following data show the miles of track and the weekday ridership in thousands of passengers for six light-rail systems (USA Today, January 7, 2003). City Miles of Track Ridership (1000s) Cleveland 17 15 Denver 19 36 Portland 40 78 Sacramento 23 28 San Diego 50 75 San Jose 33 31 St. Lois 37 42 d) Develop a 95% confidence interval for the mean weekday ridership for all light-rail systems with 30 miles of track. e) Suppose that Charlotte is considering construction of a light-rail system with 30 miles of track. Develop a 95% prediction interval for the weekday ridership for the Charlotte system. Do you think that the prediction interval you developed would be of value to Charlotte planners in anticipating the number of weekday riders for their new lightrail system? Explain. Cautions: DO NOT use a regression analysis calculator (Excel, minitab, etc.). You can use a calculator for step-by-step calculations like calculating means, sum of the deviations of squares, e.g. but you are not allowed to use a whole regression analysis calculator.
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