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
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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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