Homework SourseA consumer analyst collected the following data on the scree
A consumer analyst collected the following data on the screen sizes of popular LCD televisions sold recently at a large retailer:
Does there appear to be a linear relationship between the screen size and the price? (Round your answer to 2 decimal places.)
Use statistical software to determine the regression equation. (Negative amounts should be indicated by a minus sign. Round your answers to the nearest whole number.)
Interpret the value of the slope in the regression equation.
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.)
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.)
| A consumer analyst collected the following data on the screen sizes of popular LCD televisions sold recently at a large retailer: |
Solution
The given data is :
a) To determine the existence of a linear relationship, we get the value of the correlation coefficient R2 ,
Higher the value of correlation coefficient, better is the linear regression.
For the given data set, R2 = 0.8258 or 0.83 (approx.).
b) Since the Screen Size affects the Price of the product (larger screen size is more expensive in general),
Thus, Screen Size (S) is the independent variable and the Price (P) is the dependent variable.
c-1) The regression equation is of the form :
P = c + aS
P = Price
S = Screen Size
a = slope
c = intercept
Using Excel,
Slope = 66.33
Intercept = -712.37
Thus, equation is :
P = 66.33 S - 712.37
c-2) The slope is positive which means that with every increase in the size of the screen, the price of the product also increases.
1-inch increase will lead to an increase in the price by $ 66 approximately.
Since, it\'s a multiple sub-parts problem, I have solved the first four sub-parts. :D
Cheers!!
| Manufacturer | Screen | Price |
| Sharp | 45 | $2,430.50 |
| Samsung | 41 | 2,383.00 |
| Samsung | 37 | 1,756.00 |
| Sony | 28 | 1,360.00 |
| Sharp | 32 | 1,114.50 |
| Samsung | 50 | 2,850.00 |
| Samsung | 51 | 1,182.00 |
| Sharp | 33 | 1,273.50 |
| Sharp | 34 | 1,249.00 |
| Sony | 32 | 1,394.00 |
| Sony | 35 | 1,997.00 |
| Samsung | 25 | 950 |
| Sharp | 50 | 2,932.50 |
| Sharp | 54 | 3,150.00 |
| Sharp | 25 | 780 |
| Samsung | 28 | 1,039.50 |
| Sharp | 42 | 1,980.50 |
| Samsung | 42 | 2,233.50 |
| Sony | 52 | 2,998.50 |
| Sony | 35 | 1,931.00 |
| Sony | 34 | 1,893.00 |
| Sony | 32 | 1,200.00 |
| Sony | 36 | 1,607.50 |
