QUESTION 12 An antiques dealer is interested in factors that

QUESTION 12 An antiques dealer is interested in factors that might influence the final seling price of grandfather clocks at auction. Her data (from 32 previously auctioned clocks) includes the age of the clock (Age), the number of bidders (Bidders) at the auction, and the final selling price (Y) of the clocks The dealer believes that the effect that each additional bidder has on the final selling price of a clock depends on how old the clock is, that is, she believes there is an interaction between bidders and age. The fit of an interaction model to the data is shown below SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.976668248 0.953880866 0.948939531 88.91451215 32 ANOVA MS 3 4578427.367 1526142 193.0411 8.34956E-19 Residual Total 28 221362.1332 7905.79 4799789.5 31

Solution

estimate = 320.45799 + .878142*148 - 93.2648*9 + 1.2978*148*9 = 1339.709406