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: SALĖS-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: The regression equation is ***** redictor onstant GE IL NG Coef StDev t-ratio p-value 0.0000 0.5042 1.7586 0.2525 6.9648 0.2124 0.3175 -0.7527 0.3586 -2.0991 4.8124 0.6196 7.7664 0.0000 Analysis of Variance ource egression rror otal DF s MS F P 0.00 3 413.1291 138.7097 50 457.7607 2.2888 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 8 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.
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: SALĖS-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: The regression equation is ***** redictor onstant GE IL NG Coef StDev t-ratio p-value 0.0000 0.5042 1.7586 0.2525 6.9648 0.2124 0.3175 -0.7527 0.3586 -2.0991 4.8124 0.6196 7.7664 0.0000 Analysis of Variance ource egression rror otal DF s MS F P 0.00 3 413.1291 138.7097 50 457.7607 2.2888 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 8 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.
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter1: Equations And Graphs
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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:
SALĖS-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:
The regression equation is *****
Predictor
Coef
StDev
t-ratio
p-value
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
0.6196
7.7664
0.0000
Analysis of Variance
Source
DF
MS
F
Regression
3
413.1291
138.7097
+**
0.00
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 8 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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