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Ray Of Light [21]
3 years ago
15

A European used car dealer built a multiple linear regression model to predict the resale price of a used car based on its condi

tions and features. The model with estimated coefficients is:
Descriptions of the variables in the model:

a. Price: Offer price in Euros
b. Age: Age in months as of August 2004
c. Weight: Weight in kilograms
d. HP: Horsepower
e. KM: Cumulative kilometers on odometer
f. Quarterly_Tax: Quarterly road tax in Euros
g. Fuel_Type: Fuel type (Petrol, Diesel, CNG)

Interpret the meaning of coefficient ( 16.44) of variable Quarterly_Tax.
Business
1 answer:
Alexeev081 [22]3 years ago
8 0

Answer:

It means that one Euro increase in Quarterly road tax will lead to a 16.44 Euros increase in the Offer price. Or, one Euro decrease in Quarterly road tax will lead to a 16.44 Euros increase in the Offer price.

Explanation:

Using a0 represent the intercept, a1 to a6 to represent the coefficient, and u to represent the coefficient, the estimated multiple linear regression model can be presented as follows:

Price = a0 + a1(Age) + a2(Weight) + a3(HP) + a4(KM) + a5(Quarterly_Tax) + a6(Fuel_Type) + u

In the model, the coefficient of all the independent variables are assumed to be positive.

Given that a5 = 16.44, it means that one Euro increase in Quarterly road tax will lead to a 16.44 Euros increase in the Offer price. Or, one Euro decrease in Quarterly road tax will lead to a 16.44 Euros increase in the Offer price.

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Answer:

The correct solution is "6.09%".

Explanation:

Given:

Nominal rate,

= 6%

or,

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As we know,

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By substituting the values, we get

             =[(1+\frac{0.06}{2} )^2]-1  

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2 years ago
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Answer:

2015 FAT= 4,168323393

2016 FAT= 3,87219893

Explanation:

2015 2016

sales plant 34209 38826

propierty 15768 17111

net sales  12580 13392

propierty net 3018 3899

 

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2015 FAT=12580/3018  

2018 FAT=13392/(3899-3018)  

 

2015 FAT= 4,168323393

2016 FAT= 3,87219893

7 0
3 years ago
If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 uni
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Answer:

a) True

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$200,000 = $22,000 + Production - $24,000

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Hence, the answer is a. True

4 0
2 years ago
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Answer:

dirty price: 1,225.39

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When we purchase the bond, we are paying the bond and the accrued interest

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accrued interest at purchase:

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1,000 par value x 6% x 59/(59+2+121) =

1,000 x 0.06 x 59/182 = <em>19,45</em>

Total amount for the bonds: 1,205.94 + 19.45 = 1,225.39

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