Confidence interval for the regression parameter


The manager of a manufacturing company believes that experience is the most valuable variable in determining a worker's productivity. She collects data on productivity of 10 workers with known number of years of experience. The data collected are given bellow.

Experience, X: 15 15 13 20 13 20 11 5 15 11
Productivity %, Y: 116 128 116 130 106 120 124 111 129 105

a) Fit a linear regression model to these data

b) Determine the coefficient of determination R^2

c) Determine the estimate of the error variance

d) Find a 95% confidence interval for the regression parameter B1 and use this confidence interval to test the hypothesis H0: B1=0 versus H1: B ? 0. What is the level of significance for the test?

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Basic Statistics: Confidence interval for the regression parameter
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