Disk drives 2016 again Recall the data on disk drives we saw in Chapter 6, Exercise 4. Suppose we want to predict Price from Capacity.

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Disk drives 2016 again Recall the data on disk drives we saw
in Chapter 6, Exercise 4. Suppose we want to predict Price
from Capacity.
Capacity (in TB)
Price (in $)
0.50
59.99
1.0
79.99
2.0
111.97
3.0
109.99
149.99
423.34
596.11
1079.99
4461.00
4.0
6.0
8.0
12.0
32.0
X = 7.6111
y = 785.819
SD(x) =
SD(y) = 1418.67
r=D 0.9876
a) Find the slope estimate, b.
b) What does it mean, in this context?
c) Find the intercept. bo.
d) What does it mean, in this context? Is it meaningful?
Transcribed Image Text:Disk drives 2016 again Recall the data on disk drives we saw in Chapter 6, Exercise 4. Suppose we want to predict Price from Capacity. Capacity (in TB) Price (in $) 0.50 59.99 1.0 79.99 2.0 111.97 3.0 109.99 149.99 423.34 596.11 1079.99 4461.00 4.0 6.0 8.0 12.0 32.0 X = 7.6111 y = 785.819 SD(x) = SD(y) = 1418.67 r=D 0.9876 a) Find the slope estimate, b. b) What does it mean, in this context? c) Find the intercept. bo. d) What does it mean, in this context? Is it meaningful?
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