11.55 Auto dealer loans, continued.
Table 11.5 gives the estimated regression coefficient and individual statistic for each explanatory variable in the setting of the previous exercise. The -values are given without the sign, assuming that all tests are two-sided.
11.55
(a) . Any variable that is significant tells us that the particular variable is useful in predicting the response after all other variables are considered included in the model already. (b) Only Loan size, Length of loan, Percent down, and Unsecured loan are significant. (c) Having a larger loan size gives a smaller interest rate. Having a longer loan gives a smaller interest rate. Having a larger percent down payment gives a smaller interest rate. Having an unsecured loan gives a larger interest rate.