Let’s return to the model of iPod prices on eBay that was developed in Exercise 7 in Chapter 3. That equation was: PRICEi = 109.24 + 54.99NEWi - 20.44SCRATCHi + 0.73BIDRSi 15.342 15.112 10.592 t = 10.28 -4.00 1.23 N = 215 F = 55.09 where: PRICEi = the price at which the ith iPo
Let’s return to the model of iPod prices on eBay that was developed in
Exercise 7 in Chapter 3. That equation was:
PRICEi = 109.24 + 54.99NEWi - 20.44SCRATCHi + 0.73BIDRSi
15.342 15.112 10.592
t = 10.28 -4.00 1.23
N = 215 F = 55.09
where: PRICEi = the price at which the ith iPod sold on eBay
NEWi = a dummy variable equal to 1 if the ith iPod was
new, 0 otherwise
SCRATCHi = a dummy variable equal to 1 if the ith iPod had a
minor cosmetic defect, 0 otherwise
BIDRSi = the number of bidders on the ith iPod
a. In theory, the more bidders there are on a given iPod, the higher
the price should be. Create and test hypotheses at the 1-percent
level to see if this theory can be supported by the results.
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