Consider the following computer output from a multiple regression analysis relating the price of a used car to the variables: age of car, mileage, and safety rating. Coefficients Coefficients Standard...


Consider the following computer output from a multiple regression analysis relating the price of a used car to the variables: age of car, mileage, and safety rating.<br>Coefficients<br>Coefficients<br>Standard Error<br>t Stat<br>P-value<br>Intercept<br>49314.99<br>6450.95<br>7.645<br>0.0000<br>Age (Year)<br>- 25890.57<br>3156.87<br>- 8.201<br>0.0000<br>Mileage<br>- 1584.68<br>127.77<br>- 12.402<br>0.0000<br>(in Thousands)<br>Safety Rating<br>- 1762.27<br>2658.52<br>-0.663<br>0.5102<br>Does the sign of the coefficient for the variable safety rating make sense?<br>Answer<br>E Tables<br>Keypa<br>Keyboard Shorte<br>O Yes, because it is expected that as safety rating increases then the price should decrease.<br>O No, because it is expected that as safety rating increases then the price should also increase.<br>O No, because it is expected that as safety rating increases then the price should decrease.<br>O Yes, because it is expected that as safety rating increases then the price should also increase.<br>

Extracted text: Consider the following computer output from a multiple regression analysis relating the price of a used car to the variables: age of car, mileage, and safety rating. Coefficients Coefficients Standard Error t Stat P-value Intercept 49314.99 6450.95 7.645 0.0000 Age (Year) - 25890.57 3156.87 - 8.201 0.0000 Mileage - 1584.68 127.77 - 12.402 0.0000 (in Thousands) Safety Rating - 1762.27 2658.52 -0.663 0.5102 Does the sign of the coefficient for the variable safety rating make sense? Answer E Tables Keypa Keyboard Shorte O Yes, because it is expected that as safety rating increases then the price should decrease. O No, because it is expected that as safety rating increases then the price should also increase. O No, because it is expected that as safety rating increases then the price should decrease. O Yes, because it is expected that as safety rating increases then the price should also increase.

Jun 08, 2022
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