Question: Refer to Examples 12.112.4 and the first-order model E1y2 = b0 + b1 x1 + b2 x2, where y = auction price of a grandfather

Refer to Examples 12.1–12.4 and the first-order model E1y2 = b0 +

b1 x1 + b2 x2, where y = auction price of a grandfather clock, x1 = age of the clock, and x2 = number of bidders.

a. Estimate the average auction price for all 150-year-old clocks sold at an auction with 10 bidders. Use a 95% confidence interval. Interpret the result.

b. Predict the auction price for a single 150-year-old clock sold at an auction with 10 bidders. Use a 95% prediction interval. Interpret the result.

c. Suppose you want to predict the auction price for one clock that is 50 years old and has 2 bidders. How should you proceed?

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