The number of initial public offerings of stock issued in a

The number of initial public offerings of stock issued in a 10-year period and the total proceeds of these offerings (in millions) are shown in the table. Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 578. The equation of the regression line is y = 32.092x + 17,884.352

Issues, x    413          452           686    494    481    375      63 57 182      166

Proceeds, y 17,564      29,069      44,898     30,526     35,424     35,551     22,120     10,358   31,558   29,893

Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 578.

Select the correct choice below and fill in the answer boxes to complete your choice. (Round to the nearest million dollars as needed).

A. We can be 95% confident when there are 578 issues, the proceeds will be between $_______ and $______

B. There is a 95% chance that the predicted proceeds given 578 issues is between $_____ and $_____

Solution