An insurance company suspects that there is a positive linea

An insurance company suspects that there is a positive linear relationship between the dollar amount of fire damage in residential fires, and the distance between the residence and the nearest fire station. Data were collected on a random sample of 17 residential fires and the results are given below. The amount of fire damage (in thousands of dollars) is denoted as cost, and the distance between the residence and the nearest fire station (in miles) is denoted as distance.

Using Excel, generate a 90% interval for the dollar amount of fire damage for a residence that is 5.7 miles from the nearest fire station. (You have to decide if the interval is a confidence interval or a prediction interval)

From: __________________ To: ________________

Cost	Distance
26	1.5
27	2.6
28	3.7
37	3.8
38	4.3
47	4.5
48	4.9
50	5.8
52	6.5
57	6.8
59	7.5
68	7.6
70	8.4
83	8.5
84	9.3
96	9.4
98	9.9

Here we will use the prediciton interval, hence the interval is (40.89,64.616)

Regression output				confidence interval
variables	coefficients	std. error	t (df=15)	p-value	90% lower	90% upper
Intercept	2.6496	4.3010	0.616	.5471	-4.8903	10.1895
y	8.7901	0.6468	13.590	7.76E-10	7.6562	9.9240

Predicted values for: x
		90% Confidence Interval	90% Prediction Interval
y	Predicted	lower	upper	lower	upper	Leverage
5.7	52.753	49.908	55.598	40.890	64.616	0.061

An insurance company suspects that there is a positive linear relationship between the dollar amount of fire damage in residential fires, and the distance betwe

An insurance company suspects that there is a positive linea

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