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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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Holton Company has the following equivalent units for July: materials 20,000 and conversion 18,000. Production cost data are:
miskamm [114]

Answer:

$3.55; $3.13

Explanation:

Calculation to determine what The unit production costs for July are:

Using this formula

Unit product cost = (Beginning work in progress + Cost added) / Number of units

MATERIALS

Unit product cost=($8000+$63,000) / 20,000 units

Unit product cost=$71,000/20,000

Unit product cost=$3.55

CONVERSION

Unit product cost = ($3750+$52500) / 18,000

Unit product cost=$56,250/18,000

Unit product cost=$3.125

Unit product cost=$3.13 (Approximately)

Therefore The unit production costs for July are:$3.55; $3.13

6 0
3 years ago
One problem in the interstate trucking industry is the number of trucks that return empty after making a delivery. There is a we
balu736 [363]

Answer:

Yield management pricing

Explanation:

Yield management pricing is the charging of different prices for a given set of capacity at a specific time in order to maximize revenue. This is based on the demand and supply in the market and is very common in industries such as airlines, hotels and resorts. When there is very high demand for airline seats, prices for them are high. However, if some of those passengers decided to refund their tickets, close to departure and the flight would be taking off soon, instead of flying with empty seats and no revenue from them, the airline would decide to sell these same seats at a cheaper rate in order to gain some revenue. This is a form of revenue maximization.

6 0
3 years ago
The method that allocates an equal amount of depreciation to each year of an asset’s service life is:
kvasek [131]

Answer: Straight line method of depreciation

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This method is not commonly used for assets having longer term period but still some business entities use it as it is easy to calculate.

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4 years ago
Please help me. Only answer if you know.
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A. Occupational Outlook Handbook.
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5 0
3 years ago
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