9) Excel Exercise. Using the results for Model 1, what is the coefficient of determination?

0.1431

0.0205

0.0192

9789.29

10) Excel Exercise. Using the results for Model 1, interpret the coefficient estimate on the independent variable.

The mileage increases by about 17 miles for each $1 increase in the price.

The mileage decreases by about 0.17 miles for each $1 increase in the price.

The price increases by about 17 cents for each extra mile.

The price decreases by about 0.17 dollars for each extra mile.

11) Excel Exercise. Using the results for Model 1, for a car with 30,000 more miles, what happens to the price?

The price increases by about $5000

The price decreases by about $5000

The price increases by about $25,000

The price does not change

12) Excel Exercise. Which variable has the strongest negative correlation with price?

Milage

Cylinder

Doors

Cruise

13) Excel Exercise. Which statement best interprets a p-value?

This is the probability that the lower bound of the hypothesis test will be found from the sample data.

This is the probability that, given the null hypothesis is true, one would find a test statistic of this size.

This is the probability that, given the null hypothesis is true, one would find a test statistic at least 10 percent larger than this number.

This is the probability that one would find this test statistic in the t-table at the back of the book.

14) Excel Exercise. How many observations are in this data set?

803

805

800

804

15) Excel Exercise. Using the results for Model 2, what is the F- statistic? (Round to 2 decimals.)

1.23

95.40

106.80

7323.16

16) Excel Exercise. Using the results for Model 2, what does the F-statistic test?

it tests if all the coefficients on the RHS variables are jointly zero

This is the probability that, given the null hypothesis is true, one would find a test statistic of this size.

it is the degrees of freedom for the sum of squares regression variation

it is the mean square variation of the regression

17) Excel Exercise. Using the results for Model 3, what is the coefficient of (multiple) determination (round to 4 decimals)

0.9288

0.8627

0.8608

Cannot tell

18) Excel Exercise. Using the results for Model 2, how should we interpret the coefficient on Cylinder?

Larger engine size decreases the price.

Larger engine size increases the price.

Larger engine size increases the size of the car.

Cannot tell from the sign of the coefficient.

19) Excel Exercise. Using the results for Model 3, what does the intercept tell us?

Holding all other variables at zero, the value of a car is about $8,100

Increasing all variables by 1 unit, increases the value of the car by about $8,100.

The slope of the first x variable.

Nothing.

20) Excel Exercise. Using the results for Model 3, what does the coefficient on Cadillac mean?

A Cadillac is worth $15,500 less than any other car with all the same other features.

A Cadillac is worth $15,500 more than any other car with all the same other features.

A Cadillac is worth $15,500 more than a Saturn with all the same other features.

A Cadillac is worth $15,500 less than a Saturn with all the same other features.