Let’s return to the model of iPod prices on eBay that was developed in Exercise 7 in Chapter 3. That equation was: PRICEi = 109.24 + 54.99NEWi - 20.44SCRATCHi + 0.73BIDRSi 15.342 15.112 10.592 t = 10.28 -4.00 1.23 N = 215 F = 55.09 where: PRICEi = the price at which the ith iPod sold on eBay NEWi = a dummy variable equal to 1 if the ith iPod was new, 0 otherwise SCRATCHi = a dummy variable equal to 1 if the ith iPod had a minor cosmetic defect, 0 otherwise BIDRSi = the number of bidders on the ith iPod Test the overall significance of this equation with the F-test at the 5-percent level. Be sure to state the correct null and alternative hypotheses and to be specific with respect to your critical value.
Let’s return to the model of iPod prices on eBay that was developed in
Exercise 7 in Chapter 3. That equation was:
PRICEi = 109.24 + 54.99NEWi - 20.44SCRATCHi + 0.73BIDRSi
15.342 15.112 10.592
t = 10.28 -4.00 1.23
N = 215 F = 55.09
where: PRICEi = the price at which the ith iPod sold on eBay
NEWi = a dummy variable equal to 1 if the ith iPod was
new, 0 otherwise
SCRATCHi = a dummy variable equal to 1 if the ith iPod had a
minor cosmetic defect, 0 otherwise
BIDRSi = the number of bidders on the ith iPod
Test the overall significance of this equation with the F-test at the
5-percent level. Be sure to state the correct null and alternative hypotheses
and to be specific with respect to your critical value.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
