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1. In a PC World comparison of computer hard drives, data describing the drives included the following variables: price (dollars), disk capacity (gigabytes), and rotational speed (RPM). The data are in file XR17027. With y 5 price, x1 5 disk capacity, and x2 5 rotational speed (coded as 1 5 7200 RPM and 0 5 5400 RPM), determine the linear regression equation for estimating price as a function of the two predictor variables and interpret the partial regression coefficients. For a given storage capacity, how much extra would one expect to pay for a hard drive with the higher rotational speed? Source: Stan Miastkowski,
2. For a small sample of suburban homes recently sold, the selling price ($), living space (square feet), and suburban area (Sunny Haven, Easy Acres, or Rolling Hills) have been recorded. Given the data shown here, determine the linear regression equation for estimating selling price based on the other variables. For any qualita- tive variables that are used, be sure to specify the coding strategy employed for each. Comment on the explanatory power of the regression equation and interpret the partial regression coefficients.
"Livin' Large," PC World, March 2001, p. 109.
Home
Price
Space
Area
17.28 A researcher has observed 50 automatic teller
1
167,900
2860
Easy
machine (ATM) users outside the gift shop of a museum,
2
184,800
2050
Sunny
and the data are in file XR17028. With y 5 amount with-
3
161,000
2110
Rolling
drawn (dollars), x1 5 time required for the transaction
4
160,800
2950
(seconds), and x2 5 gender (1 5 female, 0 5 male),
5
148,200
1570
determine the linear regression equation for estimating
6
128,600
1860
the withdrawal amount as a function of the two predic-
7
145,700
2620
tor variables and interpret the partial regression coef-
8
178,500
2010
ficients. According to the equation, how much difference
9
146,100
2710
does gender tend to make in the amount withdrawn?
10
146,300
2200
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