Question

10. Consumer Reports provided extensive testing and ratings for more than 100 HDTVs. An overall score, based primarily on picture quality, was developed for each model. In general, a higher overall score indicates better performance. The following (hypothetical) data show the price and overall score for the ten 42-inch plasma televisions (Consumer Report data slightly changed here):

Brand	Prices (X)	Score (Y)
Dell	2800	60
Hisense	2800	55
Hitachi	2700	45
JVC	3500	50
LG	3300	55
Maxent	2000	38
Panasonic	4000	67
Philips	3000	56
Proview	2500	32
Samsung	3000	40

Use the above data to develop and estimated regression equation and interpret results. Compute Coefficient of Determination and correlation coefficient and show their relation. Interpret the explanatory power of the model. Estimate the overall score for a 42-inch plasma television with a price of $3800. Test the significance of slope coefficient.

Answer 1

ANSWER:

Given that

Independent variable, X : Price

Dependent variable, Y: Scores