Below is some of the regression output from a regression of the amount various c
ID: 3218806 • Letter: B
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, how much more or less on average does a customer who has bought 1 previous car pay versus a customer who has not bought a previous car? (please express your answer using 1 decimal places)
Multiple R 0.963 R square Adjusted R Square Standard Error Observations 20Explanation / Answer
The term for number of previous cars is - 8.44. Thus, for every one previous car bought by a customer, the amount paid reduces by 8.44
Hence, a customer who has bought one previous car pays 8.44 dollars less than someone who has not bought a car
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.