Below is some of the regression output from a regression of the amount various c

Question

Below is some of the regression output from a regression of the amount various customers paid for a new car (expressed in dollars) versus the age of the customer (expressed in years), the number of previous cars the customer had purchased from the dealership in the past, a dummy variable indicating the gender of the customer (=1 for a Man and = 0 for a woman), and an interactive term the multiplies the age of the customer with the gender dummy variable.

REgression Statistics

ANOVA

Based on the regression output, what is predicted amount a customer who is a 56 year old male, has bought 2 previous car(s) from the dealership? (please express your answer using 1 decimal places)

Explanation / Answer

Age = 56

# of prev = 2

Gender variable = 1

Age*Man variable = 56*1=56

Hence, the predicted amount is equal to = 6579.1 +64.8*56-751*2-588*1+14.2*56 = 8913.1

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