The National Highway Association is studying the relationship between the number of bidders on a highway project and the winning (lowest) bid for the project. Of particular interest is whether the number of bidders increases or decreases the amount of the winning bid.
a. Determine the regression equation. Interpret the equation. Do more bidders tend to increase or decrease the amount of the winning bid?
b. Estimate the amount of the winning bid if there were seven bidders.
c. A new entrance is to be constructed on the Ohio Turnpike. There are seven bidders on the project. Develop a 95 percent prediction interval for the winning bid.
d. Determine the coefficient of determination. Interpret its value.