Every year the Federal Trade Commission (FTC) must report tar and nicotine levels in cigarettes to Congress. Tar and nicotine levels of over 1200 brands of cigarettes are given to Congress and a random sample of those appear in the following table:

(a) Treating the amount of tar as the explanatory variable, x, determine the estimates of ß0 and ß1.
(b) Compute the standard error of the estimate.
(c) Determine sb1.
(d) Assuming the residuals are normally distributed, test whether a linear relation exists between the amount of tar, x, and the amount of nicotine, y, at the α = 0.1 level of significance.
(e) Assuming the residuals are normally distributed, construct a 90% confidence interval for the slope of the true leastsquares regression line.
(f) What is the mean amount of nicotine in a cigarette that has 12 milligrams of tar?

Transcribed Image Text:

Nicotine (mg), y Brand Tar (mg), x Barclay 100 0.4 Benson and Hedges King 1.1 16 Camel Regular 24 1.7 Chesterfield King 24 1.4 Doral 0.5 Kent Golden Lights 0.8 Kool Menthol 9 0.8 Lucky Strike 24 1.5 Marlboro Gold 15 1.2 Newport Menthol 18 1.3 Salem Menthol 17 1.3 0.5 Virginia Slims Ultra Light Winston Light 10 0.8