BAD 200 Study Guide - Final Guide: Prediction Interval, Confidence Interval
6 Nov 2020
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Find a 95% prediction interval for the median sale price for the year 1981. Use the data and model given there to construct a 95% prediction interval for the median sale price in 1980. The median sale prices for new single-family houses are given in the accompanying table for the years 1972 through 1979. 1 letting. Y denote the median sales price and x the year (using integers 1, 2, . , 8), fit the model y = 0 + 1 x + . The two variables and represent the year (using integers and median sales price. The underlying linear model is where is the random error component with and and are the unknown coefficients. The prediction interval for when is given by where, 2 is the upper point of the -distribution with degrees of freedom. Table 1: calculation for finding the confidence interval. 95% prediction interval for the median sales price in 1981(i. e. 10) is.
