Essentials of Statistics for Business and Economics
9th Edition
ISBN: 9780357118191
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams
Publisher: Cengage Learning US
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Chapter 15.7, Problem 37E
Pricing Refrigerators. Best Buy, a nationwide retailer of electronics, computers, and appliances, sells several brands of refrigerators. A random sample of models of full size refrigerators prices sold by Best Buy and the corresponding cubic feet (cu. ft.) and list price follow (Best Buy website).
Source: Best Buy website, (https://www.bestbuy.com/site/searchpage.jsp?st=refrigerator&_dyncharset=UTF-8& id=pcat17071 &type=page&sc=Global&cp= 1 &nrp=&sp=&qp=&list=n&af=true&iht=y&usc=All+Categories& ks=960&keys=keys)
- a. Develop the estimated simple linear regression equation to show how list price is related to the independent variable cubic feet.
- b. At the .05 level of significance, test whether the estimated regression equation developed in part (a) indicates a significant relationship between list price and cubic feet.
- c. Develop a dummy variable that will account for whether the refrigerator has the thru-the-door ice and water feature. Code the dummy variable with a value of 1 if the refrigerator has the thru-the-door ice and water feature and with 0 otherwise. Use this dummy variable to develop the estimated multiple regression equation to show how list price is related to cubic feet and the thru-the-door ice and water feature.
- d. At α = .05, is the thru-the-door ice and water feature a significant factor in the list price of a refrigerator?
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Chapter 15 Solutions
Essentials of Statistics for Business and Economics
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