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 StatisticIntercept5.48000.1245444.00Sale price0.07490.02223.37Sub-Zero brand1.13500.13878.18Total capacity (in cubic ft)0.076890.0060812.64Two-door, freezer on bottom0.047250.074670.63Two-door, side freezerBaseTwo-door, freezer on top0.37530.038139.84One door with freezer0.75220.12885.84One door, no freezer0.87620.13626.43

(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 314 degrees of freedom. Using an= .05, 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

(d)Which model demands a higher price: the side freezer or the one door with freezer model?

multiple choice

• The side freezer
• The one door