Best Buy, a nationwide retailer of electronics, computers, and appliances, sells several brands of refrigerators. A random sample of models of full size refrigerators prices sold by Best Buy and the corresponding cubic feet (cu. ft.) and list price follow (source: Best Buy website). Model Frigidaire Gallery Custom-Flex Top-Freezer Refrigerator GE French Door Refrigerator GE Frost-Free Side-by-Side Refrigerator with Thru-the-Door Ice and Water Whirlpool Top-Freezer Refrigerator Thru-the-Door Ice and Water? Cubic Feet List Price No $899.99 $1,599.99 No Yes No $1,599.99 $749.99 18.3 24.8 25.4 19.3

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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What is the coefficient of the dummy variable? What is the meaning of the coefficient of the dummy variable?

Develop a dummy variable that will account for whether the refrigerator has the thru-the-door ice and water feature. Code the dummy
variable with a value of 1 if the refrigerator has the thru-the-door ice and water feature and 0 otherwise. Use this dummy variable to
develop the estimated multiple regression equation to show how list price is related to cubic feet and the thru-the-door ice and water
feature.
Be sure to state the model and interpret the coefficients.
Transcribed Image Text:Develop a dummy variable that will account for whether the refrigerator has the thru-the-door ice and water feature. Code the dummy variable with a value of 1 if the refrigerator has the thru-the-door ice and water feature and 0 otherwise. Use this dummy variable to develop the estimated multiple regression equation to show how list price is related to cubic feet and the thru-the-door ice and water feature. Be sure to state the model and interpret the coefficients.
Pricing Refrigerators
Best Buy, a nationwide retailer of electronics, computers, and appliances, sells
several brands of refrigerators. A random sample of models of full size refrigerators
prices sold by Best Buy and the corresponding cubic feet (cu. ft.) and list price follow
(source: Best Buy website).
Model
Frigidaire Gallery Custom-Flex Top-Freezer Refrigerator
GE French Door Refrigerator
GE Frost-Free Side-by-Side Refrigerator with Thru-the-Door Ice and Water
Whirlpool Top-Freezer Refrigerator
Thru-the-Door Ice and Water? Cubic Feet List Price
$899.99
$1,599.99
$1,599.99
$749.99
No
No
Yes
No
18.3
24.8
25.4
19.3
Transcribed Image Text:Pricing Refrigerators Best Buy, a nationwide retailer of electronics, computers, and appliances, sells several brands of refrigerators. A random sample of models of full size refrigerators prices sold by Best Buy and the corresponding cubic feet (cu. ft.) and list price follow (source: Best Buy website). Model Frigidaire Gallery Custom-Flex Top-Freezer Refrigerator GE French Door Refrigerator GE Frost-Free Side-by-Side Refrigerator with Thru-the-Door Ice and Water Whirlpool Top-Freezer Refrigerator Thru-the-Door Ice and Water? Cubic Feet List Price $899.99 $1,599.99 $1,599.99 $749.99 No No Yes No 18.3 24.8 25.4 19.3
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