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 P-Value Constant 6,955 518 13.43 0.000 Mileage -0.0842 0.0176 -4.78 0.000 Liter 3,792 128 29.63 0.000 Leather 1,028 313 3.28 0.001 Regression Equation Price = 6,955 − 0.0842 Mileage + 3,792 Liter + 1,028 Leather (a) Given this Minitab printout, is the response variable in this multiple regression equation a categorical or a numerical variable? categorica/lnumerical (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 ? = 0.05. True/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 ? = 0.05. True/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 ? = 0.05. True/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 $ .???
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 P-Value Constant 6,955 518 13.43 0.000 Mileage -0.0842 0.0176 -4.78 0.000 Liter 3,792 128 29.63 0.000 Leather 1,028 313 3.28 0.001 Regression Equation Price = 6,955 − 0.0842 Mileage + 3,792 Liter + 1,028 Leather (a) Given this Minitab printout, is the response variable in this multiple regression equation a categorical or a numerical variable? categorica/lnumerical (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 ? = 0.05. True/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 ? = 0.05. True/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 ? = 0.05. True/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 $ .???
Chapter4: Linear Functions
Section: Chapter Questions
Problem 30PT: For the following exercises, use Table 4 which shows the percent of unemployed persons 25 years or...
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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.
| Coefficients | ||||
|---|---|---|---|---|
| Term | Coef | SE Coef | T-Value | P-Value |
| Constant | 6,955 | 518 | 13.43 | 0.000 |
| Mileage | -0.0842 | 0.0176 | -4.78 | 0.000 |
| Liter | 3,792 | 128 | 29.63 | 0.000 |
| Leather | 1,028 | 313 | 3.28 | 0.001 |
| Regression Equation | ||||
| Price = 6,955 − 0.0842 Mileage + 3,792 Liter + 1,028 Leather |
(a)
Given this Minitab printout, is the response variable in this multiple regression equation a categorical or a numerical variable?
categorica/lnumerical
(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
? = 0.05.
True/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
? = 0.05.
True/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
? = 0.05.
True/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 $ .???
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