One might expect the price of a tent to reflect various characteristics; for example, we might expect larger tents to cost more, all else equal (because they will hold more people) and heavier tents to cost less, all else equal (because they are harder to carry and therefore less desirable). Listings from a mail-order camping supply company provided the price, weight, and area of 30 tents. Results of a multiple regression analysis to predict price are shown in Table 12.5.3.
a. For tents of a given size (i.e., area), do heavier tents cost more or less on average than lighter tents?
b. What number from the computer output provides the answer to part a? Interpret this number and give its measurement units. Is it significant?
c. Is the result from part a consistent with expectations regarding tent pricing given at the start of the problem? Explain your answer.
d. For tents of a given weight, do larger tents cost more or less on average than smaller ones?
e. What number from the computer output provides the answer to part d? Interpret this number and give its measurement units. Is it significant?
f. Is the result from part d consistent with expectations regarding tent pricing given at the start of the problem? Explain your answer.

Transcribed Image Text:

TABLE 12.5.3 Multiple Regression Results for Tent Pricing Th e regression equation is Price 120+ 73.2 Weight 7.52 Area Predictor Constant Weight Area Coeff 120.33 73.17 StDev 54.82 15.37 t-ratio 2.19 4.76 -2.95 0.037 0.000 0.006 2.546 S-99.47 R-sge 56.7% R-squadj)-53.5% Analysis of Variance Source DF MS 349912 267146 617058 174956 17.68 0.000 Error 27 9894 Total 29