Retail Price Data For $n = 60$ Hard Disk Drives Were Recently Reported in a Computer Magazine

question 82

Essay

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)
$x _ { 1 } =$ Microprocessor SPEED (measured in megahertz)
(Values in sample range from 10 to 40 )
$x _ { 2 } =$ 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:
$\begin{array}{lrrrrr} & {\text { Analysis of Variance }} \\\text { SOURCE } & \text { DF } & \text { SS } & \text { MS } & \text { F VALUE } & \text { PROB > F } \\\text { MODEL } & 2 & 34593103.008 & 17296051.504 & 19.018 & 0.0001 \\\text { ERROR } & 57 & 51840202.926 & 909477.24431 & & \\\text { CTOTAL } & 59 & 86432305.933 & & &\end{array}$


$\begin{array}{llll}\text { ROOT MSE } & 953.66516 & \text { R-SQUARE } & 0.4002 \\\text { DEP MEAN } & 3197.96667 & \text { ADJ R-SQ } & 0.3792 \\\text { C.V. } & 29.82099 & &\end{array}$


Test to determine if the model is adequate for predicting the price of a computer. Use $\alpha =$ $.01$ .

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Definitions:

Tabula Rasa

A philosophical theory that individuals are born without built-in mental content and that all knowledge comes from experience or perception.

John Locke

A 17th-century English philosopher and physician, considered one of the most influential of Enlightenment thinkers and known as the "Father of Liberalism."

Historical Eras

Designates distinct periods of human history, each characterized by unique developments in culture, technology, and social structure.

Miniature Adults

An outdated concept regarding children as small adults capable of taking on adult responsibilities and rational thinking.