P - value Question 2) The following ANOVA and OLS estimation tables is for the estimation of relationship between car price and weight of car, the fuel efficiency of car, the place of manufacturing the car. A cross-sectional sample of 74 cars sold in USA in 2011. Source DF Sum of squares Regression 4 10339 Error 69 Total 73 11578 Variable Parameter standard error t-ratio estimation Intersept -X.ples Intercept -14.7 2.69 Wet -7.2 0.00043 1002 22 5 - 689. 5 Wet-Sq 0.0015 4.47 Mpg 5,4 0.64 Foreign 1. 1 0.003 envare R' =0.89 a=0.05 price = the price of the car (in thousands of US dollars); wgt = the weight of the car (in pounds); wgt-sq=the square of weight mpgi - the fuel efficiency of the car (in miles per gallon); foreign = 1 if the car is manufactured outside USA, = 0 otherwise. 1. Write the estimated regression equation? 2. Does fuel efficiency significant determinant of car price? : 5 4 . 18: A-K 3. Does the marginal effect of weight on price exhibit decreasing or increasing marginal sight. return? Why? decreasing, became from the ellietion seems there is fior b/ w Pawgt, which means if wit't the Pwillt I's there a difference between price of cars manufactured inside USA and foreign cars? Is .P this difference significant? , es thereis , fx : 1.1 A significant 0:03 - 566 71= 3.4 tohe 5. Find the weight of cars which maximize price? 73- 47 6. How much 0.5 mile/gallon increase in car efficiency will impact car price? 7. Find R2? What does it explains? Test if R2 is significant at a=0.05? who MR - O TR = P. W = > ( - 14. 7 - 7. 2 Wot ) W 7-14. 7 Wit- 7.2 wist RTLK. 7 - 14. 4Way 2 1 0 - 1 - 1 89 ic