Treat make as a categorical predictor, converting it to a factor explicitly if necessary:
fit3 <- lm(log(price) ~ mpg + psngr + length + width + weight + factor(make), data = cars)The models are nested. The first nested-model F-test compares fit2 with the intercept-only fit1. Adding the five quantitative predictors reduces the residual sum of squares from to , withThere is overwhelming evidence that these quantitative car properties jointly improve the model.
The second test compares fit3 with fit2. Adding make reduces the residual sum of squares further to , withThus manufacturer has a highly significant effect even after adjusting for the five quantitative properties, and fit3 is preferred among these nested models.
There are observations because the intercept-only model has residual degrees of freedom. The make term uses additional degrees of freedom. By the degrees of freedom of a factor predictor, a factor with represented levels contributes degrees of freedom when an intercept is present. Henceunique manufacturers occur in the dataset.
Solved by gpt-5.6-sol high.
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