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.
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 | |||||
| Intercept | 5.5800 | 0.12871 | 43.35 | |||||
| Sale price | −0.0733 | 0.0223 | −3.29 | |||||
| Sub-Zero brand | 1.0424 | 0.1472 | 7.08 | |||||
| Total capacity (in cubic ft) | 0.06894 | 0.00563 | 12.25 | |||||
| Two-door, freezer on bottom | 0.05198 | 0.07124 | 0.73 | |||||
| Two-door, side freezer | Base | |||||||
| Two-door, freezer on top | −0.3595 | 0.03694 | −9.73 | |||||
| One door with freezer | −0.6585 | 0.1274 | −5.17 | |||||
| One door, no freezer | −0.8435 | 0.1565 | −5.39 | |||||
(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.)
ln(Price) = _________ + __________SalePrice + __________Sub-Zero + ___________Capacity + ____________2DoorFzBot + _____________2DoorFzTop + ____________1DoorFz + ______________1DoorNoFz
(b) Find the p-value for each coefficient, using 303 degrees of freedom. Using an α = .01, which predictor variable(s) are not significant predictors? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 4 decimal places.)
| p-value | |
| SalePrice | |
| Sub-Zero | |
| Capacity | |
| 2DoorFzBot | |
| 2DoorFzTop | |
| 1DoorFz | |
| 1DoorNoFz | |
(c) By how much does the natural log of refrigerator price decrease from a two-door, side freezer model to a two-door, top freezer model? (Round your answer to 4 decimal places.)
The natural log of the price decreases by ____________?
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