Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose we were trying to build a linear model for Y : selling price of a car, based on X1 : current total distance of

image text in transcribed
image text in transcribed
Suppose we were trying to build a linear model for Y : selling price of a car, based on X1 : current total distance of car (in Kilometers), and X2 2 type of fuel (CNG (Combustible Natural Gas), Diesel, Gasoline). Price is given in thousands of dollars, and X1 is given in thousands of kilometers. Y SSE Fit X1+X2 10819.38 17.64+(-U.07)X1+(1.46)X2,D+(2.6)X2,G X1+X2+X1*X2 10769.85 1409+(-0.04)X1+(5.7)X2,D+(0.86)X2,G+(-0.04)X1X2,D+(0.03)X1X2,G There are n 2 1436 rows total in this dataset. Use this table to answer the following questions: a) State the null and alternative for testing if the interaction terms may be dropped from the model. State your conclusion for the hypothesis in (a) if 0: 2 0.05. Interpret your pvalue from (b) in terms of the problem. What does including an interaction term suggest about the relationship between price, total distance, and fuel type? Explain

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_2

Step: 3

blur-text-image_3

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

Spreadsheet Modeling And Decision Analysis A Practical Introduction To Management Science

Authors: Cliff T. Ragsdale

5th Edition

324656645, 324656637, 9780324656640, 978-0324656633

More Books

Students also viewed these Mathematics questions

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago