Scribd
Upload
212 views

Azatbek A. Classwork

This document contains 4 examples of simple linear regression analyses: 1. A regression of paint sales on price for Sherwin-Williams found a significant relationship with an R^2 of 0.750. 2. A regression of quantity sold on price for Pilot pens found a significant relationship with an R^2 of 0.717 and perfectly inelastic demand. 3. A regression of house price on size found a significant relationship with an R^2 of 0.884. 4. A multiple regression of apartment price on size, rooms, age, and garage found only size was significant but the overall model was significant with an R^2 of 0.850.

Uploaded by

Azatbek Ashirov
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
212 views

Azatbek A. Classwork

This document contains 4 examples of simple linear regression analyses: 1. A regression of paint sales on price for Sherwin-Williams found a significant relationship with an R^2 of 0.750. 2. A regression of quantity sold on price for Pilot pens found a significant relationship with an R^2 of 0.717 and perfectly inelastic demand. 3. A regression of house price on size found a significant relationship with an R^2 of 0.884. 4. A multiple regression of apartment price on size, rooms, age, and garage found only size was significant but the overall model was significant with an R^2 of 0.850.

Uploaded by

Azatbek Ashirov
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

CLASS WORK

AZATBEK ASHIROV (DASTAN DUISHENBEKOV, ELINA ATAKISHIEVA, KAMILA


JANYBEKOVA, KYLYMSHER KALYKOV, MALIKA KOZHOBEKOVA)

1. Consider the Sherwin-Williams Company example discussed in this chapter (see Table 4.1). Suppose one
is interested in developing a simple regression model with paint sales (Y) as the dependent variable and
selling price (P) as the independent variable.

a) Y=a+b*price
b) a= 390.376
b=-14.263
c) We reject null, because p-value is 0.0011 is less than 0.05, which means that there is a relationship
between the variables
d) Coefficient of determination = 0.750267273
e) .
f) Min 150.6932 Max 216.4228

2. The Pilot Pen Company has decided to use 15 test markets to examine the sensitivity of demand for its new
product to various prices, as shown in the following table. Advertising effort was identical in each market.
Each market had approximately the same level of business activity and population.

a) Q sold=29.788-0.1945*Price
b) Coefficient of determination = 0.7177
c) P-value(price)= 1.19E-08, it means that price has significant effect on quantity sold
d) PED = ((21 − 20) / (21 + 20) / 2) / ((50 - 50) / (50 + 50) / 2)
PED = 0.0122 / 0
PED = Infinity
Since |PED| = Infinity ⇒ demand is perfectly inelastic.
3. In a study of housing demand, the county assessor is interested in developing a regression model to
estimate the market value (i.e., selling price) of residential property within his jurisdiction. The assessor feels
that the most important variable affecting selling price (measured in thousands of dollars) is the size of house
(measured in hundreds of square feet). He randomly selected 15 houses and measured both the selling price
and size, as shown in the following table.
a)

Chart Title
40
35
30
25
20
15
10
5
0
240 260 280 300 320 340 360 380
b) Price=206.2789+3.955859*Size

b = 3.955859, as size increase by 1, price increases by 3.955859

c) p-value(size)= 1.82E-07, yes, it is significant


d) Coefficient of determination = 0.884742
e) F-value= 99.79042, significance F= 1.82E-07

F-value is greater than significance F, which means that relationship between variables are significant

f) {245.3528; 285.8809}

4. a) Y=185.2649+(x1*3.921432) +(x2*3.585118)+(x3*-0.11814)+(x4*-2.83169)

b)

Size3.92
1432
rooms3.
585118
age-
0.11814
garage-
2.83169
As size of apartment increases by 1 selling price increases by 3.92

As number of rooms increases by 1 selling price increases by 3.58

As age of apartment increases by 1 selling price decreases by 0.118

If apartment have a garage selling price decreases by 2.83

c)

P-value

0.00040
6
0.44124
3
0.85738
6
0.77667
7
Only size has significant effect on selling price

d)

0.850
Adjusted R Square 096
85% is explained by this regression model

e)
Significa
F nce F
20.848
24 7.69E-05
F is way greater than significance f, so model is significant

f) {254.0734:298.6118}

You might also like