A large auto dealership is interested in determining the number of cars that will be sold in a given quarter. The management of the dealership believes that a relationship can be found between the number of cars sold (Y), the advertised price ( ) and the current interest rates ( ). Their past experience shows that they tend to have better luck using a non-linear relationship. Below is the output from a regression analysis using the natural logarithm of the variables in the model.
-(A) Use the information above to estimate the regression model.
(B) Interpret each of the estimated regression coefficients of the regression model in (A). (
C) Does using a non-linear model seem to be a good choice in this example? Explain your answer.

Question

A large auto dealership is interested in determining the number of cars that will be sold in a given quarter. The management of the dealership believes that a relationship can be found between the number of cars sold (Y), the advertised price (  ) and the current interest rates (  ). Their past experience shows that they tend to have better luck using a non-linear relationship. Below is the output from a regression analysis using the natural logarithm of the variables in the model. 
-(A) Use the information above to estimate the regression model.
(B) Interpret each of the estimated regression coefficients of the regression model in (A). (
C) Does using a non-linear model seem to be a good choice in this example? Explain your answer.

Quizplus · Accepted Answer

The Answer of A large auto dealership is interested in determining the number of cars that will be sold in a given quarter. The management of the dealership believes that a relationship can be found between the number of cars sold (Y), the advertised price (  ) and the current interest rates (  ). Their past experience shows that they tend to have better luck using a non-linear relationship. Below is the output from a regression analysis using the natural logarithm of the variables in the model. 
-(A) Use the information above to estimate the regression model.
(B) Interpret each of the estimated regression coefficients of the regression model in (A). (
C) Does using a non-linear model seem to be a good choice in this example? Explain your answer.

A Large Auto Dealership Is Interested in Determining the Number