Question

A video media consultant collected the following data on popular LCD televisions sold through on-line retailers.

Manufacturer	Screen (in inches)	Price ($)
Sharp	52	1,549.25
Samsung	30	402.00
Samsung	49	1,632.00
Sony	33	480.50
Sharp	34	411.00
Samsung	51	1,488.25
Samsung	50	1,729.00
Sharp	31	432.75
Sharp	48	1,481.25
Sony	33	400.75
Sony	37	513.50
Samsung	33	486.50
Sharp	43	1,078.25
Sharp	32	463.00
Sharp	30	469.25
Samsung	51	1,721.00
Sharp	52	1,746.75
Samsung	33	467.50
Sony	38	636.75
Sony	32	421.75
Sony	42	871.00
Sony	49	1,548.25
Sony	40	812.00

a) Does there appear to be a linear relationship between the screen size and the price?

b) Which variable is the "dependent" variable?

c-1) Use statistical software to determine the regression equation. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

c-2) Interpret the value of the slope in the regression equation. (Round your answer to 3 decimal places.)

d) Include the manufacturer in a multiple linear regression analysis using a "dummy" variable. Does it appear that some manufacturers can command a premium price? Hint: You will need to use a set of indicator variables. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

e) Test each of the individual coefficients to see if they are significant. (Negative amounts should be indicated by a minus sign. Round your t-statistic to 2 decimal places and p-value to 4 decimal places.)

Answer 1