Below is some of the regression output from a regression of the amount various c

Question

Below is some of the regression output from a regression of the amount various customers paid for a new car (expressed in dollars) versus the age of the customer (expressed in years), the number of previous cars the customer had purchased from the dealership in the past, a dummy variable indicating the gender of the customer (=1 for a Man and = 0 for a woman), and an interactive term the multiplies the age of the customer with the gender dummy variable.

Regression Statistics

ANOVA

Based on the regression output, how much more or less does a 51 year old man pay versus a 51 year old woman? (please express your answer using 1 decimal places)

Explanation / Answer

The only terms that would make a difference are the ones for gender and for interactive term for age*man.

For man, the amount would be x-581(1) +13.7*51 while for woman,the amount would be x - 581(0) + 13.7(0) = x

Difference(man-woman) = x - 581 +13.7*51 - x= 117.7

A 51 yr old man pays 117.7 dollars more than a 51yr old woman

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