Problem 6-5. The CEO of a well known car seller company wants to determine the f

Question

Problem 6-5. The CEO of a well known car seller company wants to determine the factors having an influence on the percentage amount of car sales. The table bellow shows the result of a regression after setting a model with variables available.

The model includes the variable CONVERTIBLE which equals 1 if the car is convertible, zero otherwise.

The interpretation for the Convertible coefficient is........

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1

(Constant)

-2.210

1.930

-1.145

.285

Dependability

.550

.272

.384

2.024

.078

Interiorcomfort

.252

.180

.270

1.399

.199

Acceleration

.448

.233

.429

1.921

.091

Convertible

.100

.204

-.187

-1.179

.272

a. Dependent Variable: Sales

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1

(Constant)

-2.210

1.930

-1.145

.285

Dependability

.550

.272

.384

2.024

.078

Interiorcomfort

.252

.180

.270

1.399

.199

Acceleration

.448

.233

.429

1.921

.091

Convertible

.100

.204

-.187

-1.179

.272

a. Dependent Variable: Sales

Explanation / Answer

The convertible coefficient given here is 0.1,

Now as this is a binary dummy variable, and it is positive, therefore for a convertible the sales are 10% greater. which also means that Sales of non convertible cars are 10% less than sales of convertibles

Therefore A is the correct answer here.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.