Retail Price Data For $n = 60$ Hard Disk Drives Were Recently Reported in a Computer Magazine

question 36

Multiple Choice

Retail price data for $n = 60$ hard disk drives were recently reported in a computer magazine. Three variables were recorded for each hard disk drive:
$y =$ Retail PRICE (measured in dollars)
$x _ { 1 } =$ Microprocessor SPEED (measured in megahertz)
(Values in sample range from 10 to 40 )
$x _ { 2 } =$ CHIP size (measured in computer processing units)
(Values in sample range from 286 to 486 )

a first-order regression model was fit to the data. Part of the printout follows:

$\begin{array}{rrrrrrrrr}\hline &&&\text { Dep Var}&\text { Predict}&\text { Std Err }&\text {Lower 95\% }&\text {Upper 95\% }\\\text { OBS}& \text {SPEED}&\text { CHIP } & \text { PRICE } & \text { Value } & \text { Predict } & \text { Predict } & \text { Predict } & \text { Residual } \\1 & 33 & 286 & 5099.0 & 4464.9 & 260.768 & 3942.7 & 4987.1 & 634.1 \\\hline\end{array}$

Interpret the interval given in the printout.

• A) We are \(95 \%\) confident that the price of a single hard drive falls between \(\$ 3,943\) and \(\$ 4,987\).
• B) We are \(95 \%\) confident that the average price of all hard drives falls between \(\$ 3,943\) and \(\$ 4,987\).
• C) We are \(95 \%\) confident that the price of a single hard drive with 33 megahertz speed and 386 CPU falls between \(\$ 3,943\) and \(\$ 4,987\).
• D) We are \(95 \%\) confident that the average price of all hard drives with 33 megahertz speed and 386 CPU falls between \(\$ 3,943\) and \(\$ 4,987\).

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Definitions:

Eminent Domain

The right of a government to expropriate private property for public use, with compensation.

Mislaid

Property that is intentionally set down by someone who then forgets to retrieve it.

Trade Dress

The visual appearance of a product or its packaging that signifies the source of the product to consumers, which can be protected under trademark law against unauthorized use.

Overall Appearance

The general outward look or impression that something or someone presents.