Applying Regression Analysis to Predict Bicycle Prices Based on Weight | Sample Assignment

Welcome to our detailed sample solution for regression analysis, designed to provide expert regression analysis assignment help. In this project, we explore the relationship between the weight and price of racing bicycles, using real data from Bicycling World magazine. This example includes developing a scatter chart to visualize data, formulating a regression equation for predictive modeling, and performing hypothesis tests to assess the significance of our results. Additionally, we demonstrate how to apply the regression model for forecasting and decision-making. Through this comprehensive analysis, you'll see how our statistics assignment help can guide you in applying statistical methods to solve practical problems effectively.

Question:

1. Price and Weight of Bicycles. Bicycling World, a magazine devoted to cycling, reviews hundreds of bicycles throughout the year. Its Road-Race category contains reviews of bicycles used by riders primarily interested in racing. One of the most important factors in selecting a bicycle for racing is its weight. The following data show the weight (pounds) and price ($) for 10 racing bicycles reviewed by the magazine:

• Develop a scatter chart with weight as the independent variable. What does the scatter chart indicate about the relationship between the weight and price of these bicycles?
• Use the data to develop an estimated regression equation that could be used to estimate the price for a bicycle, given its weight. What is the estimated regression model?
• Test whether each of the regression parameters 0b and 1b is equal to zero at a 0.05 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable?
• How much of the variation in the prices of the bicycles in the sample does the regression model you estimated in part (b) explain?
• The manufacturers of the D’Onofrio Pro plan to introduce the 15-lb D’Onofrio Elite bicycle later this year. Use the regression model you estimated in part (a) to predict the price of the D’Ononfrio Elite.
• The owner of Michele's Bikes of Nesika Beach, Oregon is trying to decide in advance whether to make room for the D’Onofrio Elite bicycle in its inventory. She is convinced that she will not be able to sell the D’Onofrio Elite for more than $7,000, and so she will not make room in her inventory for the bicycle unless its esti-mated price is less than $7,000. Under this condition and using the regression model you estimated in part (a), what decision should the owner of Michele's Bikes make?

Solution: