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 = Retail PRICE (measured in dollars)
x1 = Microprocessor SPEED (measured in megahertz)
(Values in sample range from 10 to 40)
x2 = 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:
Identify and interpret the estimate for the SPEED
β-coefficient,
1.◦
1 = 3.57; For every $1 increase in PRICE, we estimate SPPED to increase by about 4 megahertz, holding CHIP fixed.
◦
1 = 3.57; For every 1-megahertz increase in SPEED, we estimate PRICE to increase $3,57, holding CHIP fixed.
◦
1 = 105; For every $1 increase in PRICE, we estimate SPEED to increase 105 megahertz, holding CHIP fixed.
◦
1 = 105; For every 1-megahertz increase in SPEED, we estimate PRICE (y) to increase $105, holding CHIP fixed.
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