Refrigerator prices are affected by characteristics such as whether or not the refrigerator is on sale, whether or not it is listed as a Sub-Zero brand, the number of doors (one door or two doors), and the placement of the freezer compartment (top, side, or bottom). The table below shows the regression output from a regression model using the natural log of price as the dependent variable. The model was developed by the Bureau of Labor Statistics.
(a) Write the regression model, being careful to exclude the base indicator variable.
(b) Find the p-value for each coefficient, using 319 degrees of freedom. Using an α = .01, which predictor variable(s) are not significant predictors?
(c) By how much does the natural log of refrigerator price decrease from a two-door, side freezer model to a two-door, top freezer model?
(d) Which model demands a higher price: the side freezer or the one door with freezer model?

  • CreatedAugust 19, 2015
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