Using the data from the preceding exercise, find the best predicted price for mid-grade gas for a station that posted $2.78 as the price of regular gas. Is the result close to the actual price of $2.84 for mid-grade gas?

Find the regression equation using α = 0.05, letting the first variable be the predictor (x) variable. Find the indicated predicted value by following the prediction procedure summarized in Figure.

Regular Mid-Grade 3.00 277 2.89 2.93 2.93 2.96 2.86 2.91 Premium 2.77 2.79 2.8 2.78 2.86 2.75 2.77 3.07 3.09 3.00 3.06 3.03 3.06 3.023.03 Strategy for Predicting Values of y Is the regression equation a good model? The regression line graphed in the scatterplot shows that the line fits the points well . rindicates that there is a linear correlation. . The prediction is not much beyond the scope of the available sample data Yes. The regression equation is a good model No. The regression equation is not a good model. Substitute the given value of xinto the regression Regardless of the value of the best predicted value of y is the value of y (the mean of the yvalues) equation bothix