A researcher collected data on a random sample of 12 breakfast cereals. He recorded x = fiber (in grams/ ounce) and y = price (in cents/ounce). A scatterplot of the data shows a linear relationship. The fitted regression model is
y = 17.42 + 0.62x
The sample correlation coefficient, r, is 0.23. The SE of b1 is 0.81. Also, se = 3.1.
(a) Find r2 and interpret r2 in the context of this problem.
(b) Suppose that a cereal has 2.63 grams of fiber/ounce and costs 17.3 cents/ounce. What is the residual for this cereal?
(c) Interpret the value of se in the context of this problem. That is, what does it mean to say that se = 3.1?