Expedia wants to use regression analysis to build a model for airfare tickets prices in the states: Ticket prices = 30 + 31 Miles + E where Miles is measured in hundreds Coefficients 169.50 5.90 Intercept Miles (in hundreds) Which of the following is true? Standard Error 1.34 0.09 t Stat 126.85 61.28 P-value 0.000 0.002 O If Miles increases by 1, then we predict ticket price to go up by $5.9. O If ticket price goes up by $1, then we predict Miles to go up by 590 miles. O If ticket price goes up by $100, then we predict Miles to go up by 590 miles. If Miles increases by 100, then we predict ticket price to go up by $5.9.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Expedia wants to use regression analysis to build a model for airfare tickets prices in the states:
Ticket prices = 30 + B1*Miles + E
where Miles is measured in hundreds
Coefficients
169.50
5.90
Intercept
Miles (in hundreds)
Which of the following is true?
Standard Error
1.34
0.09
4
t Stat
126.85
61.28
P-value
0.000
0.002
If Miles increases by 1, then we predict ticket price to go up by $5.9.
O If ticket price goes up by $1, then we predict Miles to go up by 590 miles.
O If ticket price goes up by $100, then we predict Miles to go up by 590 miles.
If Miles increases by 100, then we predict ticket price to go up by $5.9.
Transcribed Image Text:Expedia wants to use regression analysis to build a model for airfare tickets prices in the states: Ticket prices = 30 + B1*Miles + E where Miles is measured in hundreds Coefficients 169.50 5.90 Intercept Miles (in hundreds) Which of the following is true? Standard Error 1.34 0.09 4 t Stat 126.85 61.28 P-value 0.000 0.002 If Miles increases by 1, then we predict ticket price to go up by $5.9. O If ticket price goes up by $1, then we predict Miles to go up by 590 miles. O If ticket price goes up by $100, then we predict Miles to go up by 590 miles. If Miles increases by 100, then we predict ticket price to go up by $5.9.
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