Section 2: Written Analysis

1. Say that we ran the following regression from the Used Car data set. Note that price_in_thousands is the price of a used car in thousands of dollars, and horsepower is the horse power of the used car.

. reg price_in_thousands horsepower Source SS df MS Number of obs = 155 F(1, 153) 365.94 Model 22367.5574 1 22367.5574 Prob > F = 0.0000 Residual 9351. 81424 153 61.1229689 R-squared = 0. 7052 Adj R-squared = 0. 7032 Total 31719.3717 154 205.969946 Root MSE 7.8181 price_in_t~s Coef. Std. Err. t P>It| [95% Conf. Interval] horsepower . 2121914 . 0110923 19.13 0.000 . 1902776 . 2341052 cons -12. 0125 2.153397 -5.58 0.000 -16.26673 -7.758273