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Retail Price Data for N = 60 Hard Disk Drives y=y =

Question 13

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Retail price data for n = 60 hard disk drives were recently reported in a computer magazine. Three variables were recorded for each hard disk drive: y=y = Retail PRICE (measured in dollars)
x1=x _ { 1 } = Microprocessor SPEED (measured in megahertz)
(Values in sample range from 10 to 40 )
x2=x _ { 2 } = CHIP size (measured in computer processing units)
(Values in sample range from 286 to 486)

A first-order regression model. was fit to the data. Part of the printout follows:

\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad  Parameter Estimates \text { Parameter Estimates }

\quad \quad \quad  PARAMETER STANDARDT FOR 0: \text { PARAMETER STANDARD\quad\quad\quad\quad T FOR 0: }
 VARIABLE DF ESTIMATE  ERROR PARAMETER =0PROB>T\text { VARIABLE DF ESTIMATE } \quad \text { ERROR PARAMETER }=0 \mathrm{PROB}>|\mathrm{T}|
 INTERCEPT 1373.5263921258.12433960.2970.7676 SPEED 1104.83894022.362981954.6880.0001 CHIP 13.5718503.894229350.9170.3629\begin{array}{lrllll}\text { INTERCEPT } & 1 & -373.526392 & 1258.1243396 & -0.297 & 0.7676 \\\text { SPEED } & 1 & 104.838940 & 22.36298195 & 4.688 & 0.0001 \\\text { CHIP } & 1 & 3.571850 & 3.89422935 & 0.917 & 0.3629\end{array}
Identify and interpret the estimate of β2\beta _ { 2 } .

Correct Answer:

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β^2 = 3.57. For every one comp...

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