Answered step by step
Verified Expert Solution
Link Copied!

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-

image text in transcribed
image text in transcribed
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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Statistics In Business And Economics

Authors: David Doane, Lori Seward

4th Edition

73521485, 978-0073521480

More Books

Students also viewed these Mathematics questions

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago