Expedia wants to use regression analysis to build a model for airfare tickets prices in the states:Ticket prices = 30 + B1*Miles + Ewhere Miles is measured in hundredsCoefficients169.505.90InterceptMiles (in hundreds)Which of the following is true?Standard Error1.340.094t Stat126.8561.28P-value0.0000.002If Miles increases by 1, then we predict ticket price to go up by $5.9.O If ticket price goes up by $1, then we predict Miles to go up by 590 miles.O If ticket price goes up by $100, then we predict Miles to go up by 590 miles.If Miles increases by 100, then we predict ticket price to go up by $5.9.

Regression model:This model clearly illustrates the relationship between two variables, with one…

Expedia wants to use regression analysis to build a model for airfare tickets prices in the states: Ticket prices = 30 + 31 Miles + E where Miles is measured in hundreds Coefficients 169.50 5.90 Intercept Miles (in hundreds) Which of the following is true? Standard Error 1.34 0.09 t Stat 126.85 61.28 P-value 0.000 0.002 O If Miles increases by 1, then we predict ticket price to go up by $5.9. O If ticket price goes up by $1, then we predict Miles to go up by 590 miles. O If ticket price goes up by $100, then we predict Miles to go up by 590 miles. If Miles increases by 100, then we predict ticket price to go up by $5.9.

Expedia wants to use regression analysis to build a model for airfare tickets prices in the states: Ticket prices = 30 + 31 Miles + E where Miles is measured in hundreds Coefficients 169.50 5.90 Intercept Miles (in hundreds) Which of the following is true? Standard Error 1.34 0.09 t Stat 126.85 61.28 P-value 0.000 0.002 O If Miles increases by 1, then we predict ticket price to go up by $5.9. O If ticket price goes up by $1, then we predict Miles to go up by 590 miles. O If ticket price goes up by $100, then we predict Miles to go up by 590 miles. If Miles increases by 100, then we predict ticket price to go up by $5.9.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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