Question: Look back at the prices for the external disk drives

Look back at the prices for the external disk drives we saw in Exercise 10. The least squares line is Price = 15.112 + 62.417 Capacity.
The assumptions and conditions for regression are met.
SE(b1) = 11.328
a) Disk drives keep growing in capacity. Some tech experts now talk about Petabyte (PB = 1000 TB = 1,000,000 GB) drives. What does this model predict that a Petabyte capacity drive will cost?
b) Find a 95% prediction interval for the price of a 1 PB drive.
c) Are these predictions likely to be useful? Explain. Chapter Exercises

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  • CreatedMay 15, 2015
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