Here are prices for the external disk drives we saw in Chapter 15, exercise 10:

The least squares line is Price = 15.11 + 62.417 capacity.
The assumptions and conditions for regression are met.
SE (b1) = 11.33 and se = 42.04
a) Disk drives keep growing in capacity. Some teach 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) Is this prediction likely to be useful? Explain.

Transcribed Image Text:

Capacity (in TB) Price(in) 0.15 0.25 0.32 1.0 2.0 3.0 4.0 1.53 35.00 39.95 9.95 75.00 110.00 140.00 325.00 7 1107 SD()- 1515 ) 102049