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Beachcomber Ltd in a local car dealership that sells used and new vehicles. The manager of the company wants to know how different variables affect the sales of his vehicles. A random sample of yearly data was taken with the view to testing the model: SALES=a+BAGE+YMIL+8ENG ) Where SALES= amount that a vehicle is sold for($000's), AGE = age of the vehicle, MIL= the total mileage of the vehicle at the point of sale and ENG = the size of the engine. The sample of data was processed using MINITAB and the following is an extract of the output obtained:

Beachcomber Ltd in a local car dealership that sells used and new vehicles. The manager of the company wants to know how different variables affect the sales of his vehicles. A random sample of yearly data was taken with the view to testing the model: SALES=a+BAGE+YMIL+8ENG ) Where SALES= amount that a vehicle is sold for($000's), AGE = age of the vehicle, MIL= the total mileage of the vehicle at the point of sale and ENG = the size of the engine. The sample of data was processed using MINITAB and the following is an extract of the output obtained:

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter5: A Survey Of Other Common Functions
Section5.3: Modeling Data With Power Functions
Problem 6E: Urban Travel Times Population of cities and driving times are related, as shown in the accompanying...
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Question 4 Beachcomber Ltd in a local car dealership that sells used and new vehicles. The manager of the company wants to know how different variables affect the sales of his vehicles. A random sample of yearly data was taken with the view to testing the model: SALES=a+BAGE+YMIL+&ENG Where SÄLES= amount that a vehícle is sold for($000's), AGE = age of the vehicle, MIL= the total mileage of the vehicle at the point of sale and ENG= the size of the engine. The sample of data was processed using MINITAB and the following is an extract of the output obtained: The regression equation is ***** StDev Coef t-ratio p-value Predict or Constan 1.7586 0.2525 6.9648 0.0000 t AGE 0.2124 0.3175 0.5042 ** MIL -0.7527 0.3586 -2.0991 4.8124 *** 7.7664 0.0000 ENG Analysis of Variance DF SS MS F Source 3 413.1291 138.709 **** 0.00 Regressi 7 on 50 457.7607 2.2888 Error 53. Total d) Hence test whether & is significant. Give reasons for your answer. e) Perform the F Test making sure to state the null and alternative hypothesis. f) Given an interpretation of the term "R-sq" and comment on its value.
Transcribed Image Text:Question 4 Beachcomber Ltd in a local car dealership that sells used and new vehicles. The manager of the company wants to know how different variables affect the sales of his vehicles. A random sample of yearly data was taken with the view to testing the model: SALES=a+BAGE+YMIL+&ENG Where SÄLES= amount that a vehícle is sold for($000's), AGE = age of the vehicle, MIL= the total mileage of the vehicle at the point of sale and ENG= the size of the engine. The sample of data was processed using MINITAB and the following is an extract of the output obtained: The regression equation is ***** StDev Coef t-ratio p-value Predict or Constan 1.7586 0.2525 6.9648 0.0000 t AGE 0.2124 0.3175 0.5042 ** MIL -0.7527 0.3586 -2.0991 4.8124 *** 7.7664 0.0000 ENG Analysis of Variance DF SS MS F Source 3 413.1291 138.709 **** 0.00 Regressi 7 on 50 457.7607 2.2888 Error 53. Total d) Hence test whether & is significant. Give reasons for your answer. e) Perform the F Test making sure to state the null and alternative hypothesis. f) Given an interpretation of the term "R-sq" and comment on its value.
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