Question
Consumer Reports tested 19 different brands and models of road, fitness, and comfort bikes. Road bikes are designed for long road trips; fitness bikes are
Consumer Reports tested 19 different brands and models of road, fitness, and comfort bikes. Road bikes are designed for long road trips; fitness bikes are designed for regular workouts or daily commutes; and comfort bikes are designed for leisure rides on typically flat roads. The following data show the type, weight (lb.), and price ($) for the 19 bicycles tested. a) Develop a scatter diagram with weight as the independent variable and price as the dependent variable. Does a simple linear regression model appear to be appropriate? b) Develop an estimated multiple regression equation with x = weight, and x2 as the two independent variables. c) Use the following dummy variables to develop an estimated regression equation that can be used to predict the price given the type of bike: Type_Fitness = 1 if the bike is a fitness bike, 0 otherwise; and Type_Comfort = 1 if the bike is a comfort bike
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