Answer Happy

(3) The director of a county highway department wants to predict
the cost of a resurfacing contract that is up for
bids. The director believes that the cost, y,
is impacted by the number of miles to be resurfaced,
. Data from the last ten resurfacing contracts was
collected and a regression analysis was performed for
the model as shown in spreadsheet Problem
3.
(a) We wish to explore the model. Write
down and label the least square estimates for β0, and
β1. (4 pts)
(b) What hypotheses should we test if we want to determine if
miles-to-be-resurfaced should be in the model? (8 pts)
c) Write down the decision rule using a t statistic for our test
in part (b) using α = .05. (5 pts)
(d) What conclusion do you draw for your hypothesis test using
the decision rule in (c)? Why? (5 pts)
(e) What is the p-value for your test? (4 pts)
(f) Write down and label our estimate of . (4
pts)
(g) Construct a 95% confidence interval for the average
resurfacing cost for a project of 4 miles. (8 pts)