Problem 6-5. The CEO of a well known car seller company wants to determine the f

Question

Problem 6-5. The CEO of a well known car seller company wants to determine the factors having an influence on the percentage amount of car sales. The table bellow shows the result of a regression after setting a model with variables available. The model includes the variable CONVERTBLE which equals 1 if the car is convertible, zero otherwise The interpretation for the Convertible coefficient is.... Coefficients Unstandardized Standardized CoefficientsCoefficients Model Sig B Std. Error Beta Constant)2.210 1.930 1.145 285 Dependability .550272 384 2.024 078 1 Interiorcomfort 252 180 270 1.399 199

Explanation / Answer

As the coefficient of the binary dummy variable here is 0.1, therefore, the sales are 10% higher when the car is convertible ( as the coefficient is positive )

Therefore b is the correct answer here. because sales of non convertible cars here are 10 % less than sales of convertibles.

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