5. (9 points) The

following regression model shows the relationship between selling price of a

house [y] and the number of bedrooms [x]; y ̂=100+0.6 x. Another separate regression

model shows the relationship between selling price of house [y] and the level

of the crime per week in the neighborhood [x]; y ̂=100-0.3 x.

a.

Draw the regression line for the first and second regression.

b. Write an

interpretation for the slope coefficient in the first and second regression. Be

specific.

c.

What is the estimated value of the price of a house which has two bedrooms?

11. (9 points) A

and B are graphical representations of normally distributed random variables X

and Y, respectively, with relative positions, shapes, and sizes as shown. Which

of the following statements about X and Y are true and which one is false?

Explain your answer.

a. Y has a smaller standard deviation than X.

b. The probability that Y falls within 2 standard deviations of

its mean is greater than the probability that X falls within 2 standard

deviations of its mean.

c. Y has a smaller mean than X.