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Question
NARRBEGIN: SA_124_128A new online auction site specializes in selling automotive parts for classic cars. The founder of the company believes that the price received for a particular item increases with its age (i.e., the age of the car on which the item can be used in years) and with the number of bidders. The multiple regression output is shown below.
| Summary measures | |
| Multiple R | 0.8391 |
| R-Square | 0.7041 |
| Adj R-Square | 0.6783 |
| StErr of Estimate | 148.828 |
| Regression coefficients | ||||
| Coefficient | Std Err | t-value | p-value | |
| Constant | -1242.986 | 331.204 | -3.7529 | 0.001 |
| Age of part | 75.017 | 10.647 | 7.0459 | 0 |
| Number of Bidders | 13.973 | 10.443 | 1.338 | 0.194 |
(A) Use the information above to estimate the linear regression model.
(B) Interpret each of the estimated regression coefficients of the regression model in (A).
(C) Identify and interpret the coefficient of determination (
) for the model in (A).(D) Identify and interpret the standard error of the estimate (se) for the model in (A).
(E) Would you recommend that this company examine any other factors to predict the selling price? If yes, what other factors would you want to consider? Explain your answer.
Answer
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