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 (in Thousands) - 12.402 - 1584.68 127.77 0.0000 Safety Rating - 1762.27 2658.52 -0.663 0.5102 Does the sign of the coefficient for the variable safety rating make sense?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.6: Regression And Median-fit Lines
Problem 4GP
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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.
Transcribed Image 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.
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