a. Build a regression model with Satisf as dependent variable and Reliab, Time, Av_br, Av_Spec, Price, Credit, Return and Warranty as independent variables. Include all of the independent variables in the model (i.e., do not use variable selection)
i. Is the overall model significant? (1 point)
ii. Which independent variables are significant in this model? (1 point)
iii. Which is the most important variable? (1 point)
iv. Which is the least important variable? (1 point)
v. Does any of the variable coefficients have unexpected signs? (1 point)
vi. What % of variance is being explained by the variables in the model? (1 point)
vii. Is the regression error normally distributed? (2 point)
viii. Does the regression error have constant variance? (2 point)
ix. Suppose a new customer of ABC has following values for the independent variables.
Reliab=7, Time=6, Av-br=7, Av-Spec=5, Price=6, Credit=5, Return=5, Warranty=5.
What is your forecast of Satisf for this new customer using this regression model?
(Hint: look at ID=200) (3 points)