# Question: In the early 1990s researchers at The Ohio State University

In the early 1990s researchers at The Ohio State University studied consumer ratings of six fast-food restaurants: Borden Burger, Hardee’s, Burger King, McDonald’s, Wendy’s, and White Castle. Each of 406 randomly selected individuals gave each restaurant a rating of 1, 2, 3, 4, 5, or 6 on the basis of taste, and then ranked the restaurants from 1 through 6 on the basis of overall preference. In each case, 1 is the best rating and 6 the worst. The mean ratings given by the 406 individuals are given in the following table:

If we use simple linear regression to relate the dependent variable mean preference to the independent variable mean taste, we find that the least squares point estimate of β1 is b1 = 1.2731, and we find that the standard error of this point estimate is sb1 = .1025. (1) Interpret b1, and (2) find and interpret a 95 percent confidence interval for β1.

If we use simple linear regression to relate the dependent variable mean preference to the independent variable mean taste, we find that the least squares point estimate of β1 is b1 = 1.2731, and we find that the standard error of this point estimate is sb1 = .1025. (1) Interpret b1, and (2) find and interpret a 95 percent confidence interval for β1.

**View Solution:**## Answer to relevant Questions

What is the difference between a confidence interval and a prediction interval? The following partial Excel add-in (MegaStat) regression output for the direct labor cost data relates to predicting direct labor cost when the batch size is 60. a. Report (as shown on the computer output) a point estimate ...Explain how we test H0: ρ = 0 versus Ha: ρ ≠ 0. What do we conclude if we reject H0: ρ = 0? In regression analysis, what should the residuals be plotted against? What four assumptions do we make about the simple linear regression model?Post your question