Question: Suppose we were trying to build a linear model for Y : selling price of a car, based on X1 : current total distance of

 Suppose we were trying to build a linear model for Y

: selling price of a car, based on X1 : current total

Suppose we were trying to build a linear model for Y : selling price of a car, based on X1 : current total distance of car (in Kilometers), and X2 2 type of fuel (CNG (Combustible Natural Gas), Diesel, Gasoline). Price is given in thousands of dollars, and X1 is given in thousands of kilometers. Y SSE Fit X1+X2 10819.38 17.64+(-U.07)X1+(1.46)X2,D+(2.6)X2,G X1+X2+X1*X2 10769.85 1409+(-0.04)X1+(5.7)X2,D+(0.86)X2,G+(-0.04)X1X2,D+(0.03)X1X2,G There are n 2 1436 rows total in this dataset. Use this table to answer the following questions: a) State the null and alternative for testing if the interaction terms may be dropped from the model. State your conclusion for the hypothesis in (a) if 0: 2 0.05. Interpret your pvalue from (b) in terms of the problem. What does including an interaction term suggest about the relationship between price, total distance, and fuel type? Explain

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!