Question
Refrigerator prices are affected by characteristics such as whether or not the refrigerator is on sale, whether or not it is listed as a Sub-Zero
Refrigerator prices are affected by characteristics such as whether or not the refrigerator is on sale, whether or not it is listed as a Sub-Zero brand, the number of doors (one door or two doors), and the placement of the freezer compartment (top, side, or bottom). The table below shows the regression output from a regression model using the natural log of price as the dependent variable. The model was developed by the Bureau of Labor Statistics.
VariableCoefficientStandard Errort StatisticIntercept5.72000.1213147.15Sale price0.07510.02592.90Sub-Zero brand1.02120.14467.06Total capacity (in cubic ft)0.061280.006179.94Two-door, freezer on bottom0.040450.074180.55Two-door, side freezerBaseTwo-door, freezer on top0.44200.0371211.91One door with freezer0.75850.13145.77One door, no freezer0.85980.13476.38
(a)Write the regression model, being careful to exclude the base indicator variable.(Negative amounts should be indicated by a minus sign. Round your answers to 4 decimal places.)
ln(Price)=+SalePrice+Sub-Zero+Capacity+2DoorFzBot+2DoorFzTop+1DoorFz+1DoorNoFz
(b)Find thep-value for each coefficient, using 310 degrees of freedom. Using an= .01, which predictor variable(s) are not significant predictors?(Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 4 decimal places.)
p-valueSalePriceSub-ZeroCapacity2DoorFzBot2DoorFzTop1DoorFz1DoorNoFz
(c)By how much does the natural log of refrigerator price decrease from atwo-door,side freezermodelto atwo-door,top freezer model?(Round your answer to 4 decimal places.)
The natural log of the price decreases by
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