A consumer analyst collected the following data on the screen sizes of popular LCD televisions sold recently at a large retailer:
Manufacturer Screen Price Sharp 47 $1,030.50 Samsung 45 1,165.50 Samsung 46 1,502.50 Sony 45 1,037.00 Sharp 52 1,823.00 Samsung 43 2,366.50 Samsung 31 1,395.50 Sharp 39 2,161.00 Sharp 48 2,187.00 Sony 42 1,206.00 Sony 46 2,729.00 Samsung 54 2,165.00 Sharp 45 1,525.00 Sharp 44 2,695.50 Sharp 35 1,297.00 Samsung 36 1,927.00 Sharp 32 1,111.50 Samsung 46 2,692.50 Sony 32 1,858.50 Sony 39 1,446.50 Sony 47 2,967.00 Sony 51 1,676.00 Sony 55 1,660.00
(a) Does there appear to be a linear relationship between the screen size and the price? (Round your answer to 2 decimal places.) , the correlation of Screen and Price is .
(b) Which variable is the "dependent" variable? Price Screen size
(c) Use statistical software to determine the regression equation. (Round your answers to the nearest whole number. Negative amounts should be indicated by a minus sign.) Price = + Screen.
1. Interpret the value of the slope in the regression equation. (Round your answer to the nearest whole number.) For each inch increase in screen size, the price increases $ on average.
(d) Include the manufacturer in a multiple linear regression analysis using a "dummy" variable. Does it appear that some manufacturers can command a premium price? Hint: You will need to use a set of indicator variables. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.) Price = + Screen + Manufacturer Sharp + Manufacturer Sony
(e) Test each of the individual coefficients to see if they are significant. (Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign.) Predictor TP Screen Manufacturer_Sharp Manufacturer_Sony