Best Buy, a nationwide retailer of electronics, computers, and appliances, sells several brands of refrigerators. A random
Question:
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, July 26, 2016).
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 a = .05, is the thru-the-door ice and water feature a significant factor in the list price of a refrigerator?
Step by Step Answer:
Modern Business Statistics With Microsoft Excel
ISBN: 9781337115186
6th Edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran