Question 10.43

10.43 Predicting 2013 tuition from 2008 tuition.

Refer to Exercise 10.15 (pages 504–505).

tuit

  1. Find a 95% confidence interval for the mean tuition amount corresponding to a 2008 tuition of $7750.
  2. Find a 95% prediction interval for a future response corresponding to a 2008 tuition of $7750.
  3. Write a short paragraph interpreting the meaning of the intervals in terms of public universities.
  4. Do you think that these results can be applied to private universities? Explain why or why not.

10.43

(a) (8574, 9709). (b) (5900, 12384). (c) For all public universities with tuition of $7750 in 2008, the mean tuition in 2013 will be between $8574 and $9709 with 95% confidence. For an individual public university with tuition of $7750 in 2008, the prediction tuition in 2013 will be between $5900 and $12,384 with 95% confidence. (d) No, private universities likely are different than public universities.