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)