Calculating Margin of Error for 95% Confidence Interval in Rent Predictions

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Discussion Overview

The discussion revolves around calculating the margin of error for a 95% confidence interval in the context of rent predictions derived from a fitted regression equation. Participants are exploring the methodology for determining this margin of error, referencing specific values and a table for clarification.

Discussion Character

  • Homework-related, Technical explanation

Main Points Raised

  • One participant suggests that to capture the actual rent amount 95% of the time, predictions should include a margin of error of about plus or minus a specific value, listing several options.
  • Another participant questions whether the task involves an inference for a regression test.
  • A subsequent reply confirms that it is indeed related to regression inference.
  • Additional resources are provided by another participant, directing attention to specific pages of a statistical lecture for further assistance.
  • One participant offers further help if needed, indicating a willingness to assist with the calculations or concepts involved.

Areas of Agreement / Disagreement

There is no consensus on the specific margin of error value, as multiple options are presented without agreement on which is correct. The discussion remains unresolved regarding the exact calculation method.

Contextual Notes

Participants reference a table and a specific statistical resource, but the details of the table and the calculations involved are not fully explained, leaving some assumptions and steps unresolved.

rowdy3
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To capture the actual Rent amount 95% of the time, predictions from the fitted equation should include a margin of error of about plus or minus ______ (round to the nearest ten dollars).
$128
$114 (answer)
$57
$228
Here's a pic of the table. How did they get the answer? http://picturetrail.com/sfx/album/view/24285022
I know k2= 95%. I know you do 2 * (standard error) but I don't see that on the table.
 
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Is this an inference for regression test that you're doing?
 
Yes I think so.
 
Check out :

http://www.stat.berkeley.edu/~thornton/STAT20/lec18slides4.pdf

focus on pages 3,4, and let us know if you need more help.
 
Please let me know if you need more help.
 

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