Construct and interpret a prediction interval

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Reference no: EM13891346

The number of initial public offerings of stock issued in a 10-year period and the total proceeds of these offerings ("n millions) are shown in the table.

Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 578. The equation of the regression line is y = 32.518x + 18,135.782.

Issues, x

420

456

680

494

497

377

65

72

196

162

Proceeds, y

19,476

29,693

43,699

31,663

37,271

36,694

21,820

11,700

30,579

29,943

Construct and interpret a 95% prediction interval fo the proceeds when the number of issues is 578.

Select the correct choice below and fill in the answer boxes to complete your choice. (Round to the nearest million dollars as needed.)

A We can be 95% confident that when there are 578 issues, the proceeds will be between $____ and $____

B There is a 95% chance that the predicted proceeds given 578 issues is between $____ and $____.

Reference no: EM13891346

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