Chapter 14.5, Problem 27E

The number of megapixels in a digital camera is one of the most important factors in determining picture quality. But, do digital cameras with more megapixels cost more? The following data show the number of megapixels and the price ($) for 10 digital cameras (Consumer Reports, March 2009).

Brand and Model	Megapixels	Price ($)
Canon PowerShot SD1100 IS	8	180
Casio Exilim Card EX-510	10	200
Sony Cyber-shot DSC-T70	7	230
Pentax Optio M50	8	120
Canon PowerShot G10	15	470
Canon PowerShot A590 IS	8	140
Canon PowerShot E1	10	180
Fujifilm FinePix F00FD	12	310
Sony Cyber-shot DSC-W170	10	250
Canon PowerShot A470	7	110

1. a. Use these data to develop an estimated regression equation that can be used to predict the price of a digital camera given the number of megapixels.
2. b. At the .05 level of significance, are the number of megapixels and the price related? Explain.
3. c. Would you feel comfortable using the estimated regression equation developed in part (a) to predict the price of a digital camera given the number of megapixels? Explain.
4. d. The Canon Power Shot S95 digital camera has 10 megapixels. Predict the price of this camera using the estimated regression equation developed in part (a).