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1. You are asked to determine whether laptop brand A charges a higher premium for its laptops than brand B. You observe a sample of six laptops, their prices and brand. You observe a performance benchmark x for each of the laptops. Let (yi, xi) denote the price and performance of laptop i. Your data are: Obs. i = 1 i = 2 i = 3 i = 4 i=5 i=6 Brand Price A $1000 A $1500 A $2000 B $1500 B $2000 B $2500 Performance 1 2 3 3 4 5 Draw a scatter plot of price vs. performance. Which brand produces more expensive laptops on average in the sample? Would you say this brand charges a higher premium? Explain by writing down an appropriate regression model, estimation results and an intepretation of your results.

1. You are asked to determine whether laptop brand A charges a higher premium for its laptops than brand B. You observe a sample of six laptops, their prices and brand. You observe a performance benchmark x for each of the laptops. Let (yi, xi) denote the price and performance of laptop i. Your data are: Obs. i = 1 i = 2 i = 3 i = 4 i=5 i=6 Brand Price A $1000 A $1500 A $2000 B $1500 B $2000 B $2500 Performance 1 2 3 3 4 5 Draw a scatter plot of price vs. performance. Which brand produces more expensive laptops on average in the sample? Would you say this brand charges a higher premium? Explain by writing down an appropriate regression model, estimation results and an intepretation of your results.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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1. You are asked to determine whether laptop brand A charges a higher premium for its laptops than brand B. You observe a sample of six laptops, their prices and brand. You observe a performance benchmark x for each of the laptops. Let (yi, xi) denote the price and performance of laptop i. Your data are: Obs. i = 1 i = 2 i = 3 i = 4 i = 5 i = 6 Brand Price Performance A $1000 1 A $1500 2 A $2000 3 B $1500 3 B $2000 B $2500 4 5 Draw a scatter plot of price vs. performance. Which brand produces more expensive laptops on average in the sample? Would you say this brand charges a higher premium? Explain by writing down an appropriate regression model, estimation results and an intepretation of your results.
Transcribed Image Text:1. You are asked to determine whether laptop brand A charges a higher premium for its laptops than brand B. You observe a sample of six laptops, their prices and brand. You observe a performance benchmark x for each of the laptops. Let (yi, xi) denote the price and performance of laptop i. Your data are: Obs. i = 1 i = 2 i = 3 i = 4 i = 5 i = 6 Brand Price Performance A $1000 1 A $1500 2 A $2000 3 B $1500 3 B $2000 B $2500 4 5 Draw a scatter plot of price vs. performance. Which brand produces more expensive laptops on average in the sample? Would you say this brand charges a higher premium? Explain by writing down an appropriate regression model, estimation results and an intepretation of your results.
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