Refrigerator prices are affected by characteristics such as whether or not the refrigerator is on sale, whether or not it is listed as a Sub- Zero brand, the number of doors (one door or two doors), and the placement of the freezer compartment (top, side, or bottom). The table below shows the regression output from a regression model using the natural log of price as the dependent variable. The model was developed by the Bureau of Labor Statistics. Variable Coefficient Standard Error t Statistic 5.4841 -0.0733 0.13081 Intercept Sale price 41.92 0.0234 -3.13 Sub-Zero brand 1.1196 0.1462 7.66 0.06956 0.005351 13.00 Total capacity (in cubic feet) Two-door, freezer on bottom Two-door, side freezer 0.04657 0.08085 0.58 Base Two-door, freezer on top 0.03596 -9.55 One door with freezer -0.3432 -0.7096 -0.8820 0.1310 -5.42 One door, no freezer 0.1491 -5.92 (a) Write the regression model, being careful to exclude the base indicator variable. (Negative amounts should be indicated by a minus sign. Round your answers to 4 decimal places.)
Refrigerator prices are affected by characteristics such as whether or not the refrigerator is on sale, whether or not it is listed as a Sub- Zero brand, the number of doors (one door or two doors), and the placement of the freezer compartment (top, side, or bottom). The table below shows the regression output from a regression model using the natural log of price as the dependent variable. The model was developed by the Bureau of Labor Statistics. Variable Coefficient Standard Error t Statistic 5.4841 -0.0733 0.13081 Intercept Sale price 41.92 0.0234 -3.13 Sub-Zero brand 1.1196 0.1462 7.66 0.06956 0.005351 13.00 Total capacity (in cubic feet) Two-door, freezer on bottom Two-door, side freezer 0.04657 0.08085 0.58 Base Two-door, freezer on top 0.03596 -9.55 One door with freezer -0.3432 -0.7096 -0.8820 0.1310 -5.42 One door, no freezer 0.1491 -5.92 (a) Write the regression model, being careful to exclude the base indicator variable. (Negative amounts should be indicated by a minus sign. Round your answers to 4 decimal places.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Refrigerator prices are affected by characteristics such as whether or not the refrigerator is on sale, whether or not it is listed as a Sub-
Zero brand, the number of doors (one door or two doors), and the placement of the freezer compartment (top, side, or bottom). The
table below shows the regression output from a regression model using the natural log of price as the dependent variable. The model
was developed by the Bureau of Labor Statistics.
Variable
Coefficient Standard Error t Statistic
5.4841
Intercept
0.13081
41.92
Sale price
-0.0733
0.0234
-3.13
Sub-Zero brand
1.1196
0.1462
7.66
0.06956
0.005351
13.00
Total capacity (in cubic feet)
Two-door, freezer on bottom
Two-door, side freezer
0.04657
0.08085
0.58
Two-door, freezer on top
0.03596
-9.55
Base
-0.3432
-0.7096
-0.8820
One door with freezer
0.1310
-5.42
-5.92
One door, no freezer
0.1491
(a) Write the regression model, being careful to exclude the base indicator variable. (Negative amounts should be indicated by a
minus sign. Round your answers to 4 decimal places.)
In(Price) =
Sale Price +
Sub-Zero +
Capacity +
2DoorFzBot+
8 of 10
^ D 4»)
9x1
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