Once you learn about 4K technology you may find that you are in need of a new TV. Comparing TVs can be difficult with so many different features available. It is hard to know which ones have the most impact on the price.
We used multiple regression analysis to answer this question. We looked at all the 4K TVs for sale on the Best Buy website at the end of February 2015. Excluding the three high-end sets that cost over $US20k each, we were left with 46 televisions to analyse. After playing around a bit we found that the following three factors can explain 89% of the dispersion in prices:
- Size: The relationship between price and size is not linear. As size increases, so does the marginal cost of each additional inch. We took the diagonal size in inches to the 5th power to get the best fit.
- Curve: This is a binary variable. We used 1 for curved TVs and 0 for regular sets.
- 3D: This is another binary variable. We used 1 for 3D capable TVs and 0 for non-3D. This factor carried quite a bit of weight. Some of the cost attributed to this feature may be due to the fact that 3D capable TVs are most likely newer models.
Armed with a little regression analysis you should have no problem picking out the perfect 4K TV.
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