Exam 15: Multiple Regression Model Building

Question

TABLE 15-1 A certain type of rare gem serves as a status symbol for many of its owners. In theory, for low prices, the demand increases and it decreases as the price of the gem increases. However, experts hypothesize that when the gem is valued at very high prices, the demand increases with price due to the status owners believe they gain in obtaining the gem. Thus, the model proposed to best explain the demand for the gem by its price is the quadratic model:

where Y = demand (in thousands) and X = retail price per carat. This model was fit to data collected for a sample of 12 rare gems of this type. A portion of the computer analysis obtained from Microsoft Excel is shown below: SUMMARY OUTPUT Regression Statistics

ANOVA

-Referring to Table 15-1, what is the p-value associated with the test statistic for testing whether there is an upward curvature in the response curve relating the demand (Y) and the price (X)?

Instruction and Data Collection

Presenting Data in Tables and Charts

Numerical Descriptive Measures

Basic Probability

Some Important Discrete Probability Distributions

The Normal Distribution and Other Continuous Distributions

Sampling and Sampling Distributions

Confidence Interval Estimation

Fundamentals of Hypothesis Testing: One-Sample Tests

Two-Sample Tests

Analysis of Variance

Chi-Square Tests and Nonparametric Tests

Simple Linear Regression

Introduction to Multiple Regression

Time-Series Analysis and Index Numbers

Statistical Applications in Quality Management

Data Analysis Overview

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