1. Interpret the model coefficients for the following variables - origin = 2 (i.e. Europe), and horsepower. (15 points)

Coefficients Intercept 39.70057837 horsepower -0.156429706 Org in= Europe 0.50415589SUMMARY OUTPUT Regression Statistics Multiple R 0.77878066 R Square 0.606499316 Adjusted R Sq 0.604476176 Standard Erro 4.908622659 Observations 392 ANOVA df SS MS F Significance F Regression 2 14446.20325 7223.10162 299.781225 1.6478E-79 Residual 389 9372.790224 24.0945764 Total 391 23818.99347 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 39.70057837 0.785509869 50.5411579 4.91E-173 38.1562023 41.2449544 38.1562023 41.2449544 horsepower -0.156429706 0.006728196 -23.249872 1.3777E-75 -0.1696579 -0.1432015 -0.1696579 -0.1432015 Orgin= Europe 0.50415589 0.683068274 0.7380754 0.46091365 -0.8388117 1.84712349 -0.8388117 1.84712349