Examine the regression and scatterplot showing the regressio
Examine the regression and scatterplot showing the regression line, 90% confidence interval, and 90% prediction interval using 1990 and 2004 energy use (kg oil equivalent per $1000 GDP) for a sample of 96 countries. The response variable is 2004 Energy Use.
Regression Output
R-squared 0.870303
R-squared Adj 0.868923
S 43.6401
Term Coeff SE (Coeff) t-Ratio P-Value
Intercept 23.979345 9.148568 2.62 0.0102
Use 1990 0.8073999 0.032148 25.12 <0.0001
Explain the meaning of the 90% prediction interval in this context.
Explain the meaning of the 90% condfidence interval in this context.
a) What is the meaning of the 90% prediction interval mean?
For _________ (*possible choices: (all of the countries or an individual country) , the regression model predicts, with 90% confidence, the interval of possible values of ________ (1990 Energy use or 2004 energy use) based on the value of _______ (1990 Energy use or 2004 energy use)
b) What is the meaning of the 90% confidence interval mean?
For ________ (*Possible choices: all of the countries or an individual country) the regression model predicts, with 90% confidence, the possible values (mean 1990 Energy use or mean 2004 energy use) based on the value (mean 1990 Energy use or mean 2004 energy use). Because it is an interval for a (mean, single value) the variation or uncertainty is (smaller, larger) so the interval is (wider, narrower).
Solution
a) What is the meaning of the 90% prediction interval mean?
For _________all of the countries , the regression model predicts, with 90% confidence, the interval of possible values of ________2004 energy use based on the value of _______ (1990 Energy
b) What is the meaning of the 90% confidence interval mean?
For ________all of the countries the regression model predicts, with 90% confidence, the possible values mean 1990 Energy use based on the value mean 1990 Energy Because it is an interval for a mean the variation or uncertainty is larger so the interval is wider
