Bundle: Statistics for Business & Economics, Loose-leaf Version, 13th + MindTap Business Statistics with XLSTAT, 2 terms (12 months) Printed Access Card
13th Edition
ISBN: 9781337127264
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: Cengage Learning
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Chapter 16, Problem 30SE
Consumer Reports tested 19 different brands and models of road, fitness, and comfort bikes. Road bikes are designed for long road trips; fitness bikes are designed for regular workouts or daily commutes; and comfort bikes are designed for leisure rides on typically flat roads. The following data show the type, weight (lb.), and price ($) for the 19 bicycles tested (Consumer Reports website, February 2009).
| Brand and Model | Type | Weight | Price($) |
| Klein RÃave v | Road | 20 | 1800 |
| Giant OCR Composite 3 | Road | 22 | 1800 |
| Giant OCR 1 | Road | 22 | 1000 |
| Specialized Roubaix | Road | 21 | 1300 |
| Trek Pilot 2.1 | Road | 21 | 1320 |
| Cannondale Synapse 4 | Road | 21 | 1050 |
| LeMond Poprad | Road | 22 | 1350 |
| Raleigh Cadent 1.0 | Road | 24 | 650 |
| Giant FCR3 | Fitness | 23 | 630 |
| Schwinn Super Sport GS | Fitness | 23 | 700 |
| Fuji Absolute 2.0 | Fitness | 24 | 700 |
| Jamis Coda Comp | Fitness | 26 | 830 |
| Cannondale Road Warrior 400 | Fitness | 25 | 700 |
| Schwinn Sierra GS | Comfort | 31 | 340 |
| Mongoose Switchback SX | Comfort | 32 | 280 |
| Giant Sedona DX | Comfort | 32 | 360 |
| Jamis Explorer 4.0 | Comfort | 35 | 600 |
| Diamondback Wildwood Deluxe | Comfort | 34 | 350 |
| Specialized Crossroads Sport | Comfort | 31 | 330 |
- a. Develop a
scatter diagram with weight as the independent variable and price as the dependent variable. Does a simple linear regression model appear to be appropriate? - b. Develop an estimated multiple regression equation with x = weight and x2 as the two independent variables.
- c. Use the following dummy variables to develop an estimated regression equation that can be used to predict the price given the type of bike: Type_Fitness = 1 if the bike is a fitness bike, 0 otherwise; and Type_Comfort = 1 if the bike is a comfort bike; 0 otherwise. Compare the results obtained to the results obtained in part (b).
- d. To account for possible interaction between the type of bike and the weight of the bike, develop a new estimated regression equation that can be used to predict the price of the bike given the type, the weight of the bike, and any interaction between weight and each of the dummy variables defined in part (c). What estimated regression equation appears to be the best predictor of price? Explain.
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Chapter 16 Solutions
Bundle: Statistics for Business & Economics, Loose-leaf Version, 13th + MindTap Business Statistics with XLSTAT, 2 terms (12 months) Printed Access Card
Ch. 16.1 - Consider the following data for two variables, x...Ch. 16.1 - Consider the following data for two variables, x...Ch. 16.1 - Prob. 3ECh. 16.1 - A highway department is studying the relationship...Ch. 16.1 - In working further with the problem of exercise 4,...Ch. 16.1 - A study of emergency service facilities...Ch. 16.1 - In 2011, home prices and mortgage rates fell so...Ch. 16.1 - Corvette, Ferrari, and Jaguar produced a variety...Ch. 16.1 - Kiplingers Personal Finance Magazine rated 359...Ch. 16.2 - In a regression analysis involving 27...
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