The number of megapixels in a digital camera is one of the m

The number of megapixels in a digital camera is one of the most important factors in determining picture quality. But do digital cameras with more megapixels cost more? The folowng data show the number of megapixels and the price for 10 digital cameras.

a. Use these data to develop an estimated regression equation that can be used to predict the price of a digital camera given the number of megapixels.

b. At the .05 level of significance, are the number of megapixels and the price related? Explain.

c. Would you feel comfortable using the estimated regression equation developed in part \"a\" to predict the price of a digital camera given the numbe rof megapixels? Explain.

d. The Canon Power Shot S95 digital camera has 10 megapixels. Predict the price of this camera using the estimate regression equation developed in part \"a\".

Solution

from the regression analysis,

a) the regression equation is Price (Y) = -145.027 + 38.31858*megapixel(X)

b) at 0.05 level of significance, the number of mega pixel and the price are not related. because p-value is 0.06> 0.05

c) as the p-value 0.06 indicates at 0.05 level of significance that there is no relation between megapixel and price I would not use this model

d) The price of the Canon Power Shot S95 digital camera has 10 megapixels is

Y = -145.027+ 38.31858*10 = $238.1588