Question

Model Summary Adjusted R Square Std. Error of the Estimate Model R R Square 1 .843a .711 .707 7.812812 a. Predictors: (Constant), Fuel efficiency, Horsepower Coefficientsa Standardized Coefficients Beta Sig 2.354 .020 Unstandardized Coefficients Model B Std. Error 1 (Constant) 28.144 11.954 Horsepower 229 .013 Length - 219 Fuel efficiency -.090 .185 a. Dependent Variable: Price in thousands .906 16.989 ,000 .050 - 205 -4.348 .000 -.027 -.488 .627 Model Summary Adjusted R Square Std. Error of the Estimate Model R R Square 1 .832 .693 .685 6.475458 a. Predictors: (Constant), Horsepower, Length, Fuel efficiency Coefficients Standardized Coefficients Beta t Sig ,000 3.706 Unstandardized Coefficients Model Std. Error 1 (Constant) 43.437 11.722 Length - 293 .050 Fuel efficiency -.093 .177 Horsepower .175 .013 a. Dependent Variable: 4-year resale value -5.894 .000 - 350 -.035 .894 - 525 .601 .000 13.711 Explain whether horsepower appears to have a bigger impact on the price of new cars or used cars and how you know. Refer to the regression results.

Answer 1

Note : Using the P-value approach we have concluded that horsepower have a significant effect of price of cars.

o from the giver output the estimated regression equation for price as a dependent variable IS Price in thousands = 28:144 +0.229 Horsepower -0.219 Length - oigo full efficiency. Ler Bi Coefficient of predictor Horsepower- We have to check whether horsepower appears to have a bigger impact on the price of cars or le To test, Vs Ho: ßito. noti Ho: ßi and 0.000 from the given results, t-stanishe = 16.989 P-vame (sig.) This at 5% level of significance & P-value = 0.000 < x=0.05. Hence we reject to at 5% level of significance. conclude that horsepower have a bigger impact on the price of new cars or used cars, Herce we can