1 COST 2 14 3 35 B IPAGES US 384 S 152 H 4 40 64 H 5 24.95 80 S 6 29.95 224 H 7 29.95 282 H 8 12.95 304 S 9 22.95 256 H 10 22 192 H 11 12 240 S 12 24.95 250 H 13 16.95 212 S 14 21 224 H 15 27.5 240 H 16 13.5 288 S 17 24.95 320 H 18 25 304 H 19 22.95 225 H 20 14.95 256 S 21 25 256 H 22 12.95 352 S 23 18 192 H 24 25 320 H 25 9.99 208 S 26 16.95 624 S 27 11.95 144 S 28 12 192 S 29 22.95 256 H 30 17.95 192 H 31 22.95 304 H 32 12 224 S 33 12.95 400 S 34 29.95 704 H 35 12 368 S 36 16.95 688 S 37 21.95 368 H 38 22.95 528 H 39 12 304 S 40 22.95 376 H 41 21.95 400 H 42 23 352 H 43 14.95 64 H 44 46 47 48 49 23.95 352 H 23 384 H 23.95 218 H 21.95 352 H 24.95 352 H 13.95 96 H 23.95 320 H A B 3. 51 18.99 280 H 52 19.99 288 H 53 25 254 H 54 25 288 H 55 12 352 S 56 14 368 S 57 39.95 352 H 58 27.95 476 H 59 29.95 208 H 60 35 560 H 61 35 1200 H 62 27.5 320 H 63 27 350 H 64 19.95 256 S 65 13 336 S 66 30 408 H 67 27.5 256 H 68 12.95 288 S 69 14.95 208 H 70 35 352 H 71 45 858 H 72 16 832 S 73 16 825 S 74 30 416 H 75 13.5 320 S 76 13 288 S 77 24.95 220 H 78 24 256 H 79 24.95 176 H 80 15 352 S 81 22.95 288 H 82 24.95 336 H 83 13.5 304 S 84 25 320 H 85 7.95 144 S 86 21.95 368 H 87 25 256 H 88 15.95 636 S 89 19.95 224 H 90 30 544 H 91 12 256 S 92 20 208 H 93 12.95 416 S 94 12 320 S 95 8.95 400 S 96 21.95 275 H 97 12.5 272 S 98 14.95 96 H 99 13 288 S 100 14 240 S 101 23.95 102 23 208 H 320 H 103 10 80 H 104 18 912 S 105 11.99 336 S 106 13 256 S 107 16 288 S 108 17.95 400 S 109 22.5 224 S 110 30 608 H 111 12 240 S 112 17.95 192 S 113 19.95 568 S 114 25 144 S 115 10 128 S 116 23.95 256 H 117 15.95 112 H 118 12.95 320 S 119 23 256 H 120 25 320 H 121 23 240 H 122 23 320 H 123 22.95 288 H 124 24.95 352 H 125 35 224 H 126 25 544 H 127 11.95 224 S 128 12.95 272 S 129 14.95 256 S 130 30 176 H 131 19.95 320 H 132 22 288 H 133 23 288 H 134 14 256 S 135 10 80 S 136 10.95 416 S 137 10.95 160 S 138 19.95 304 H 139 24.95 450 S 140 30 544 H 141 19.95 192 H 142 18.95 288 H 143 15 268 S 144 23 288 H 145 10.95 200 S 146 12.95 348 S 147 22 208 H 148 22.95 224 H 149 12.95 64 S 150 9.95 240 S A B 151 22.5 256 H 152 13.95 352 S 153 7.95 128 S 154 14.95 240 S 155 23 320 H 156 20.95 224 H 157 35 240 H 158 17.95 256 S 159 11 160 S 160 24.95 496 H 161 25 320 H 162 15 416 S 163 20 176 H 164 12.5 336 S 165 22.95 224 H 166 11 128 S 167 10 144 S 168 7.95 76 S 169 24.95 96 H 170 40 184 H 171 40 192 H 172 23.95 160 H 173 10 120 H 174 24.95 384 H 175 22.95 304 H 176 29.95 176 H 177 15.95 352 S 178 24.95 384 H 179 21.95 188 H 180 11 256 S 181 18.95 144 H 182 24.95 192 H 183 21 240 H 184 10 144 S 185 12.95 175 S 186 19.95 256 H 187 16 204 H 188 8.95 120 S 189 12 64 S 190 11 192 S 191 24.95 320 H 192 13.5 432 S 193 27.5 608 H 194 30 448 H 195 15 464 S 196 26 304 H 197 21.95 385 H 198 22.95 336 H 199 25 432 H 200 21.95 320 H 201 17.95 252 H 201 17.95 252 H 202 12 240 S 203 23 256 H 204 17 128 H 205 20 240 H 206 14 528 S 207 23.95 352 H 208 21 192 H The Publishing Industry: A major publishing company would like to develop an equation to determine the cost of books that it publishes. It has a sample of 207 books that have been published recently. Of the 207 books in the sample, 83 are hardcover and 124 are softcover. Hardcover books obviously are priced at a premium, so some adjustment for this will need to be made. The variables in the worksheet entitled "BOOKCOST7" are as follows. COST (y) = the cost of producing the book in dollars PAGES (x) = the number of pages in the book COVER (x2) = "S" if the book is softcover and "H" if it is hardcover (a) Develop an equation to predict the cost for books to be published in the future. However, the change in cost based on the number of pages is hypothesized to be different for soft and hardcover books. Therefore, fit the appropriate interaction model. State the model equation. = B + B + 22 + 334 = B + B + Bx+ B3x4 = B + B + Bx + 3x3 = B + B + Bx+ Bzxqx Which one of the terms above represents the interaction? O $22 1x1 $33 $34 3x1*2 (b) Fit this regression model. Code the COVER variable so that hardcover books serve as the reference group (Therefore, we suggest naming the indicator variable SOFT). Be sure to include the interaction term as well. (We suggest naming the interaction variable SOFTPAGES) What is the effect of the interaction of the number of pages and cover type on cost? (Round your answers to four decimal places.) per page for soft cover books vs. hard cover books (c) Does the effect of the number of pages on cost depend on whether or not a book is a softcover or hardcover book? Conduct a hypothesis test to answer this question and use a 5% level of significance. State the hypotheses to be tested. H: B = 0 Hai P = 0 H: P = 0 H: B3 = 0 H = 0 H: B = 0 Hi B = 0 Interpret the hypotheses you specified above. H: An interaction exists between the number of pages and book cover type that impacts cost. H: No interaction exists between the number of pages and book cover type that impacts cost. H: None of the explanatory variables in the model are useful in predicting cost. H: All of the explanatory variables in the model are useful in predicting cost. H: At least one of the explanatory variables in the model is useful in predicting cost. H: None of the explanatory variables in the model are useful in predicting cost. O H: No interaction exists between the number of pages and book cover type that impacts cost. H: An interaction exists between the number of pages and book cover type that impacts cost. H: None of the explanatory variables in the model are useful in predicting cost. H: At least one of the explanatory variables in the model is useful in predicting cost. State the decision rule. O Reject H if p < 0.05. Do not reject H, if p 0.05. O Reject H, if p > 0.05. Do not reject H, if p 0.05. O Reject H if p > 0.025. Do not reject H, if p 0.025. O Reject H, if p < 0.025. Do not reject H, if p 0.025. State the appropriate test statistic name, degrees of freedom, test statistic value, and the associated p-value (Enter your degrees of freedom as a whole number, the test statistic value to three decimal places, and the p-value to four decimal places). -Select--- State your decision. P-Select-v Reject the null hypothesis. The effect of the number of pages on cost does not depend on whether or not a book is a softcover or hardcover book. O Reject the null hypothesis. The effect of the number of pages on cost does depend on whether or not a book is a softcover or hardcover bookindows Do not reject the null hypothesis. The effect of the number of pages on cost does depend on whether or not a book is a softcover or hardcover book. Go to Settings to activate Windows. Do not reject the null hypothesis. The effect of the number of pages on cost does not depend on whether or not a book is a softcover or hardcover book. Use the model to make the following predictions. (d) Predict the average cost of a softcover book with 967 pages. (Provide a point prediction and round your answer to the nearest cent.) Predict the average cost of a hardcover book with 967 pages. (Provide a point prediction and round your answer to the nearest cent.) $ (e) Predict the average cost of a softcover book with 1,033 pages. (Provide a point prediction and round your answer to the nearest cent.) $ Predict the average cost of a hardcover book with 1,033 pages. (Provide a point prediction and round your answer to the nearest cent.)