Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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-
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. Standard Variable Coefficient EFFor & Statistic Intercept 5.4841 D.13081 41.92 Sale price -0.0733 0. 0234 -3.13 Sub-Zero brand 1. 1196 0. 1462 7.66 Total capacity (in cubic feet) 0 . 06956 0 . 005351 13.0-0 Two-door, freezer on bottom D. 04657 0. 08085 0.58 Two-door, side freezer Base Two-door, freezer on top -0.3432 D. 03596 -9.55 One door with freezer -0. 7096 0. 1310 -5.42 One door, no freezer -0. 8820 0. 1491 -5.92 (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.) in (Price) = Sale Price + Sub Zero + Capacity + 2DoorFzBat + 2DoorFz Top + 1DoorFz + 1DoorNoFz (b) Find the p-value for each coefficient, using 319 degrees of freedom. Using an a =.01, which predictor variable(s) are not significant predictors? (Leave no cells blank - be certain to enter "O" wherever required. Round your answers to 4 decimal places.) p-value SalePrice Sub Zero Capacity 2DoorFzBot 2DoorFzTop 1 DoorFz 1 DoorNaFz (c) By how much does the natural log of refrigerator price decrease from a two-door, side freezer model to a two-door, top freezer model? (Round your answer to 4 decimal places.) The natural log of the price decreases by 1.0000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started