d Include the manufacturer in a multiple linear regression a

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.) Screen Manufacturer Sharp Price = Manufacturer Sony . 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 \"O\" wherever required Negative amounts should be indicated by a minus sign.) Predictor Constant Screen Manufacturer Sharp Manufacturer Sony 7.13

Solution

A)

Yes. The correlation between them is 0.8565

b) Here Price is dependent variable and sizee is independent variable.

c 1)The Regression equation is y =a+bx

hence from Excel the fitted regression is y(price)=-861.037 +72.145 (screen)

c2 )Here slope=72.144 . for each inch increase in screen size, the price increases $72.145 on an average.

	Screen	Price
Screen	1
Price	0.856592	1