Question

The accompanying regression table shows a regression of MSRP​ (manufacturer's suggested retail​ price) on both Displacement and Bore for​ off-road motorcycles. Both of the predictors are measures of the size of the engine. The displacement is the total volume of air and fuel mixture that an engine can draw in during one cycle. The bore is the diameter of the cylinders.

1. Determine the test statistic. T = ____________
2. Determine the​ P-value. P- Value = ____________
3. Assume α = 0.05. What is the proper​ conclusion?
   (Accept or Reject) H˳._______ There is (insufficient or sufficient) evidence that Bore has a coefficient that is (different from zero, greater than zero, equal to zero or less than zero)
4. Both of these predictors seem to be linearly related to MSRP. Explain what the result in​ (a) means. Choose the correct answer below.

1. Bore has a coefficient that is clearly different from zero and is significant in predicting MSRP in the multiple regression.
2. Although Bore might be individually significant in predicting​ MSRP, in the multiple​ regression, it does not add enough to the model to have a coefficient that is clearly different from zero.
3. Bore has a coefficient that is not clearly different from zero but does contribute in the multiple regression to predicting MSRP.
4. Bore has a coefficient that is clearly different from zero but does not contribute in the multiple regression to predicting MSRP.

Dependent variable​ is: MSRP

R2 = 75.5​%

R2 (adjusted) = 77.1​%

S = 979.8 with 98 – 3 = 95 degrees of freedom

Variable	Coeff	SE​ (Coeff)			​t-ratio	​P-value
Intercept	313.306		1008		0.311	0.7566
Bore	40.4551		25.93		1.56	0.1220
Displacement	6.97839		3.913		1.78	0.0777

Answer 1