Question
Pricing Refrigerators Best Buy, a nationwide retailer of electronics, computers, and appliances, sells several brands of refrigerators. A random sample of models of full size
Pricing Refrigerators Best Buy, a nationwide retailer of electronics, computers, and appliances, sells several brands of refrigerators. A random sample of models of full size refrigerators prices sold by Best Buy and the corresponding cubic feet (cu. ft.) and list price follow (source: Best Buy website).
a. Develop the estimated simple linear regression equation to show how list price is related to the independent variable cubic feet. b. At the 0.05 level of significance, test whether the estimated regression equation developed in part (a) indicates a significant between list price and cubic feet. (Be sure to include all the steps of hypothesis testing: hypotheses, the test statistic, p-value, decision, and conclusion!) c. Develop a dummy variable that will account for whether the refrigerator has the thru-the-door ice and water feature. Code the dummy variable with a value of 1 if the refrigerator has the thru-the-door ice and water feature and 0 otherwise. Use this dummy variable to develop the estimated multiple regression equation to show how list price is related to cubic feet and the thru-the-door ice and water feature. Be sure to state the model and interpret the coefficients. d. At the 0.05 level of significance, is the thru-the-door ice and water feature a significant factor in the list price of a refrigerator? (Be sure to include all the steps of hypothesis testing: hypotheses, the test statistic, p-value, decision, and conclusion!)
| Model | Thru-the-Door Ice and Water? | Cubic Feet | List Price |
| Frigidaire Gallery Custom-Flex Top-Freezer Refrigerator | No | 18.3 | $899.99 |
| GE French Door Refrigerator | No | 24.8 | $1,599.99 |
| GE Frost-Free Side-by-Side Refrigerator with Thru-the-Door Ice and Water | Yes | 25.4 | $1,599.99 |
| Whirlpool Top-Freezer Refrigerator | No | 19.3 | $749.99 |
| GE Frost-Free Top-Freezer | No | 17.5 | $599.99 |
| Whirlpool French Door Refrigerator with Thru-the-Door Ice and Water | Yes | 19.6 | $1,619.99 |
| Samsung French Door Refrigerator | No | 25.0 | $999.99 |
| Samsung Side-by-Side Refrigerator | No | 24.5 | $1,299.99 |
| Whirlpool Side-by-Side Refrigerator with Thru-the-Door Ice and Water | Yes | 25.4 | $1,299.99 |
| Frigidaire Gallery Frost-Free Side-by-Side Refrigerator with Thru-the-Door Ice and Water | Yes | 26.0 | $1,299.99 |
| Frigidaire Side-by-Side Refrigerator with Thru-the-Door Ice and Water | Yes | 25.6 | $1,099.99 |
| Frigidaire Top-Freezer Refrigerator | No | 18.0 | $579.99 |
| Whirlpool French Door Refrigerator with Thru-the-Door Ice and Water | Yes | 25.0 | $2,199.99 |
| Whirlpool Top-Freezer Refrigerator | No | 20.5 | $849.99 |
| GE Frost-Free Top-Freezer | No | 15.5 | $549.99 |
| Samsung 4-Door French Door Refrigerator with Thru-the-Door Ice and Water | Yes | 28.2 | $2,599.99 |
| Samsung Showcase 4-Door French Door Refrigerator | No | 27.8 | $2,999.99 |
| Samsung 3-Door French Door Refrigerator with Thru-the-Door Ice and Water | Yes | 24.6 | $2,399.99 |
| Frigidaire Side-by-Side Refrigerator with Thru-the-Door Ice and Water | Yes | 22.6 | $1,099.99 |
| GE Side-by-Side Refrigerator with Thru-the-Door Ice and Water | Yes | 21.8 | $1,499.99 |
| GE Bottom-Freezer Refrigerator | No | 20.9 | $1,649.99 |
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Algebra And Trigonometry
Authors: Ron Larson
9th Edition
1285605705, 9781285605708
