Question 11.22

11.22 Predicting the price of a tablet.

Refer to the previous exercise. Let’s use the model with Observation 11 removed.

tablts

  1. What is the predicted price for the second tablet? The characteristics are , , , , , and .

    547

  2. The stated price for this tablet is $400. Is the predicted price above or below the stated price? Should you consider buying it? Explain your answer.
  3. Explain how you could use the residuals to help determine which tablet to buy.
  4. Consumer Reports names Tablets 4, 8, 12, and 20 as "Best Buys." Based on your regression model, do you agree with this assessment? What tablets would you recommend?