A multiple regression model is used to study the relationshi…
A multiple regression model is used to study the relationship between the car price ($) and several other variables. A screenshot of the partial dataset is as follows: To incorporate the size information (3 levels) in the regression model, we create two dummy variables, Size_Small and Size_Family. Size-Small has value 1 if the car is small sedan and 0 otherwise; and Size_Family has value 1 if the car is family sedan and 0 otherwise. Followed is the multiple regression results from Excel. (a) Is the average price between small and upscale sedan significantly different from 0 at the significance level of 0.01? (b) With all other variables’ values the same, the average price difference between the small and family sedans is $ . (Keep 2 decimal places and use a negative number if the price of small sedan is less than family sedan.)