1. Create dummy variables to indicate the type of vehicle: SUV = 1 for a sports utility vehicle, 0 otherwise; and FULLSIZE = 1 if the product was a full-sized pickup, 0 otherwise.

What is the reference category that does not an associated dummy variable?

Group of answer choices

-Sport Utility

-Type of Vehicle

-Small Pickup

-Full-Size Pickup

2. Run a regression with resale as the dependent variable and suggested resale price as the independent variable. Call this Model A. What is the adjusted R-squared of this model?(two decimals)

3. Run a regression with resale as the dependent variable ; suggested resale price and dummy variables for SUV and FULL-SIZE PICKUP as the independent variable. Call this Model B. What is adjusted R-squared of this model?

4. What is the coefficient on SUV ?

Vehicle	Type of Vehicle	Suggested Retail Price ($)	Resale Value (%)
Chevrolet Blazer LS	Sport Utility	19495	55
Ford Explorer Sport	Sport Utility	20495	57
GMC Yukon XL 1500	Sport Utility	26789	67
Honda CR-V	Sport Utility	18965	65
Isuzu VehiCross	Sport Utility	30186	62
Jeep Cherokee Limited	Sport Utility	25745	57
Mercury Mountaineer	Sport Utility	29895	59
Nissan Pathfinder XE	Sport Utility	26919	54
Toyota 4Runner	Sport Utility	22418	55
Toyota RAV4	Sport Utility	17148	55
Cvevrolet S-10 Extended Cab	Small Pickup	18847	46
Dodge Dakota Club Cab Sport	Small Pickup	16870	53
Ford Ranger XLT Regular Cab	Small Pickup	18510	48
Ford Ranger XLT Supercab	Small Pickup	20225	55
GMC Sonoma Regular Cab	Small Pickup	16938	44
Isuzu Hombre Spacecab	Small Pickup	18820	41
Mazda B4000 SE Cab Plus	Small Pickup	23050	51
Nissan Frontier XE Regular Cab	Small Pickup	12110	51
Toyota Tacoma Xtracab	Small Pickup	18228	49
Toyota Tacoma XtracabV6	Small Pickup	19318	50
Chevrolet K2500	Full-Size Pickup	24417	60
Chevrolet Silverado 2500 Ext	Full-Size Pickup	24140	64
Dodge Ram 1500	Full-Size Pickup	17460	54
Dodge Ram Quad Cab 2500	Full-Size Pickup	32770	63
Dodge Ram Regular Cab 2500	Full-Size Pickup	23140	59
Ford F150 XL	Full-Size Pickup	22875	58
Ford F-350 Super Duty Crew Cab XL	Full-Size Pickup	34295	64
GMC New Sierra 1500 Ext Cab	Full-Size Pickup	27089	68
Toyota Tundara Access Cab Limited	Full-Size Pickup	25605	53
Toyota Tundra Regular Cab	Full-Size Pickup	15835	58

Answer rating: 100% (QA)

1 Type of vehicle is not a category so it wont be the dummy Created the dummy variables which are sh... View the full answer