Chapter 16.1, Problem 7E

Home Depot, a nationwide home improvement retailer, sells several brands of washing machines. A sample of 24 models of full-size washing machines sold by Home Depot and the corresponding capacity (Cu Ft) and list price follow (Home Depot website, September 5, 2016).

1. a. Develop a scatter diagram for these data, treating cubic feet as the independent variable. Does a simple linear regression model appear to be appropriate?
2. b. Use a simple linear regression model to develop an estimated regression equation to predict the list price given the cubic feet. Construct a standardized residual plot. Based upon the standardized residual plot, does a simple linear regression model appear to be appropriate?
3. c. Using a second-order model, develop an estimated regression equation to predict the list price given the cubic feet.
4. d. Do you prefer the estimated regression equation developed in part (a) or part (c)? Explain.
5. e. Are there other factors that should be considered for inclusion as independent variables in this regression?