The following multiple regression printout can be used to predict the price (Price) of a used car given how many miles it has on it (Mileage), the size of the engine (Liter), and whether it has leather interior (Leather), where Leather 1 for cars that have leather interior and O otherwise. Regression Analysia: Price Versua Mileage, Liter, Leather Coefficiente SE Coef 511 Coef 6,966 -0.0046 3,797 1,021 Term 2-Value P-Value 0.000 0.000 Constans Mileage Liter Leasher 13.41 0.0179 -4.73 125 30.30 0.000 314 0.001 3.28 Regression Equation Price- 6,966 - 0.0846 MAleage 3,797 Liter + 1,021 Leather (a) Given this Minitab printout, is the response variable in this multiple regression equation a categorical or a numerical variable? enumerical O categorical (b) Determine whether the following statement is true or false. Given this Minitab printout, the regression coefficient for miles on the car (Mileage) is statistically significant at a - 0.05. O True O False (e) Determine whether the following statement is true or false. Given this Minitab printout, the regression coefficient for engine size (Liters) is statistically significant at a - 0.05. True O False (d) Determine whether the following statement is true or false. Given this Minitab printout, the regression coefficient for whether the car has a leather interior (Leather) is statistically significant at a- 0.05. True O False (e) How does having leather seats affect the expected price of the car, controlling for the mileage and size of the engine? It is expected to increase the price of the used car by $ 1

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The following multiple regression printout can be used to predict the price (Price) of a used car given how many miles it has on it (Mileage), the size of the engine (Liter), and whether it has leather interior (Leather), where Leather = 1 for cars that have leather interior and 0 otherwise.
Regression Analysis: Price Versus Mileage, Liter, Leather
Coefficients
Term
Coef
SE Coef
T-Value
F-Value
Constant
6,956
511
13.61
0.000
Mileage
-0.0846
0.0179
-4.73
0.000
Liter
3,797
125
30.38
0.000
Leather
1,021
314
3.25
0.001
Regression Equation
Price = 6,956 - 0.0846 Mileage + 3,797 Liter + 1,021 Leather
(a) Given this Minitab printout, is the response variable in this multiple regression equation a categorical or a numerical variable?
O numerical
O categorical
(b) Determine whether the following statement is true or false.
Given this Minitab printout, the regression coefficient for miles on the car (Mileage) is statistically significant at a = 0.05.
O True
O False
(c) Determine whether the following statement is true or false.
Given this Minitab printout, the regression coefficient for engine size (Liters) is statistically significant at a = 0.05.
O True
O False
(d) Determine whether the following statement is true or false.
Given this Minitab printout, the regression coefficient for whether the car has a leather interior (Leather) is statistically significant at a = 0.05.
O True
O False
(e) How does having leather seats affect the expected price of the car, controlling for the mileage and size of the engine?
It is expected to increase the price of the used car by $ 1
Transcribed Image Text:The following multiple regression printout can be used to predict the price (Price) of a used car given how many miles it has on it (Mileage), the size of the engine (Liter), and whether it has leather interior (Leather), where Leather = 1 for cars that have leather interior and 0 otherwise. Regression Analysis: Price Versus Mileage, Liter, Leather Coefficients Term Coef SE Coef T-Value F-Value Constant 6,956 511 13.61 0.000 Mileage -0.0846 0.0179 -4.73 0.000 Liter 3,797 125 30.38 0.000 Leather 1,021 314 3.25 0.001 Regression Equation Price = 6,956 - 0.0846 Mileage + 3,797 Liter + 1,021 Leather (a) Given this Minitab printout, is the response variable in this multiple regression equation a categorical or a numerical variable? O numerical O categorical (b) Determine whether the following statement is true or false. Given this Minitab printout, the regression coefficient for miles on the car (Mileage) is statistically significant at a = 0.05. O True O False (c) Determine whether the following statement is true or false. Given this Minitab printout, the regression coefficient for engine size (Liters) is statistically significant at a = 0.05. O True O False (d) Determine whether the following statement is true or false. Given this Minitab printout, the regression coefficient for whether the car has a leather interior (Leather) is statistically significant at a = 0.05. O True O False (e) How does having leather seats affect the expected price of the car, controlling for the mileage and size of the engine? It is expected to increase the price of the used car by $ 1
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