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=?+?AGE+?MIL+?ENG 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: The regression equation is ***** Coef StDev t-ratio p-value Predict or constant 1.7586 0.2525 6.9648 0.0000 AGE 0.2124 0.3175 * 0.5042 MIL -0.7527 0.3586 -2.0991 ** ENG 4.8124 *** 7.7664 0.0000 R-sq=56.1% R-sq(adj) =59.8% Analysis of Variance Source DF SS MS F P Regressi 3 413.1291 138.709 **** 0.00 on 7 Error 50 457.7607 2.2888 Total 53 a) What is dependent and independent variables? b) Fully write out the regression equation c) Fill in the missing values ‘*’, ‘**’, ‘***’and ‘****’ 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.
sub-part to be answered plz...
d)
e)
f)
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=?+?AGE+?MIL+?ENG
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:
The regression equation is *****
Coef StDev t-ratio p-value
Predict
or
constant 1.7586 0.2525 6.9648 0.0000
AGE 0.2124 0.3175 * 0.5042
MIL -0.7527 0.3586 -2.0991 **
ENG 4.8124 *** 7.7664 0.0000
R-sq=56.1% R-sq(adj) =59.8%
Analysis of Variance
Source DF SS MS F P
Regressi 3 413.1291 138.709 **** 0.00
on 7
Error 50 457.7607 2.2888
Total 53
a) What is dependent and independent variables?
b) Fully write out the regression equation
c) Fill in the missing values ‘*’, ‘**’, ‘***’and ‘****’
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.
F =
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