7t. Bicycling, the world's leading cycling magazine, reviews hundreds of bicycles throughout the year. Their "Road-Race" category contains reviews of bikes used by riders primarily interested in racing. One of the most important factors in selecting a bike for racing is the weight of the bike. The following data show the weight (pounds) and price ($) for 10 racing bikes reviewed by the magazine.†BrandWeightPrice ($)FELT F517.82,100PINARELLO Paris16.16,250ORBEA Orca GDR14.98,370EDDY MERCKX EMX-715.96,200BH RC1 Ultegra17.24,000BH Ultralight 38613.18,600CERVELO S5 Team16.26,000GIANT TCR Advanced 217.12,580WILIER TRIESTINA Gran Turismo17.63,400SPECIALIZED S-works Amira SL414.18,000(a)Use the data to develop an estimated regression equation that could be used to estimate the price for a bike given the weight. (Round your numerical values to the nearest integer).ŷ = (b)Compute r2. (Round your answer to three decimal places.)r2 = Did the estimated regression equation provide a good fit?The estimated regression equation did not provide a good fit, since r2 ≥ 0.55.The estimated regression equation did not provide a good fit, since r2 < 0.55. The estimated regression equation provided a good fit, since r2 ≥ 0.55.The estimated regression equation provided a good fit, since r2 < 0.55.(c)Predict the price (in dollars) for a bike that weighs 16 pounds. (Round your answer to the nearest dollar.)$

Price Weight 2100 17.8 6250 16.1 8370 14.9 6200 15.9 4000 17.2 8600 13.1 6000 16.2…

Answered: t. Bicycling, the world's leading…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

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7t. Bicycling, the world's leading cycling magazine, reviews hundreds of bicycles throughout the year. Their "Road-Race" category contains reviews of bikes used by riders primarily interested in racing. One of the most important factors in selecting a bike for racing is the weight of the bike. The following data show the weight (pounds) and price ($) for 10 racing bikes reviewed by the magazine.†

Brand	Weight	Price ($)
FELT F5	17.8	2,100
PINARELLO Paris	16.1	6,250
ORBEA Orca GDR	14.9	8,370
EDDY MERCKX EMX-7	15.9	6,200
BH RC1 Ultegra	17.2	4,000
BH Ultralight 386	13.1	8,600
CERVELO S5 Team	16.2	6,000
GIANT TCR Advanced 2	17.1	2,580
WILIER TRIESTINA Gran Turismo	17.6	3,400
SPECIALIZED S-works Amira SL4	14.1	8,000

(a)

Use the data to develop an estimated regression equation that could be used to estimate the price for a bike given the weight. (Round your numerical values to the nearest integer).

ŷ =

(b)

Compute

r².

(Round your answer to three decimal places.)

r²

Did the estimated regression equation provide a good fit?

The estimated regression equation did not provide a good fit, since r² ≥ 0.55.The estimated regression equation did not provide a good fit, since r² < 0.55. The estimated regression equation provided a good fit, since r² ≥ 0.55.The estimated regression equation provided a good fit, since r² < 0.55.

(c)

Predict the price (in dollars) for a bike that weighs 16 pounds. (Round your answer to the nearest dollar.)

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