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

question 25

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:

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Analysis of Variance }$
$\begin{array}{lrrrrr}\text { SOURCE } & \text { DF } & \text { SS } & \text { FS VALUE } & \text { PROB }>\text { F }\\\text { MODEL } & 2 & 34593103.008 & 17296051.504 & 19.018 & 0.0001 \\\text { ERROR } & 57 & 51840202.926 & 909477.24431 & & \\\text { C TOTAL } & 59 & 86432305.933 & &\end{array}$

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

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

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Definitions:

Business Products

Goods and services that are purchased or leased for commercial use, direct use in producing other goods or services, or for resale.

Ancillary Products

Products or services that are supplementary to a main product or service, often enhancing the value or experience of the main offering.

Wholesale Goods

Goods sold in large quantities at reduced prices, typically to retailers who then sell them to the public.

Retail Products

Goods that are sold to the public through stores, online, or other channels, typically for personal or household use.