Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 612. The number of initial public offerings of stock issued in a 10-year period and the total proceeds of these offerings(in millions) are shown in the table. Construct and interpret a 95% prediction interval for the proceeds when thenumber of issues is 612. The equation of the regression line is y = 33.596x + 17,451.251.Issues, xProceeds, y 19,709 29,791 43,962 30,612 37,454 36,474 20,222 11,102 30,100 29,482415470689495488 396 7152176153 eConstruct and interpret a 95% prediction interval for the proceeds when the number of issues is 612.Select the correct choice below and fill in the answer boxes to complete your choice.(Round to the nearest million dollars as needed. Type your answer in standard form where "3.12 million" means3,120,000.)O A. We can be 95% confident that when there are 612 issues, the proceeds will be between $and $O B. There is a 95% chance that the predicted proceeds given 612 issues is between $and $

Name: Construct and interpret a 95% prediction interval for the proceeds wh
Uploaded: 2024-03-20T06:46:03.000Z
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Description: Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 612. The number of initial public offerings of stock issued in a 10-year period and the total proceeds of these offerings(in millions) are shown in the t

Use EXCEL to obtain the value of standard error. EXCEL procedure: Go to EXCEL Go to Data>Data Analysis. Choose Regression. Input Y range as $A$1:$A$11. Input X range as $B$1:$C$11. Check the option Labels in First row. Click OK. EXCEL output: From the EXCEL output, the value of standard error is 6856.121. Predict the proceeds when the number of issues is 612. Sub x=612 in the regression equation.Obtain the 95% prediction interval for the proceeds when the number of issues is 612. The formula for the prediction interval is, Use EXCEL Procedure for finding the critical value of t. Follow the instruction to obtain the critical value of t: Open EXCEL Go to Formula bar. In formula bar enter the function as“=TINV” Enter the probability as 0.05. Enter the degrees of freedom as 8. Click enter. EXCEL output: From the EXCEL output, the critical value of t at the 0.05 level of significance with the 8 degrees of freedom is 2.3060. That is, The 95% prediction interval for the proceeds when the number of issues is 612 lies between 20127.9913 and 55896.0147. Correct option: Option B There is a 95% chance that the predicted proceeds given 612 issues is between $20127.9913 and $55896.0147