Question

The Honda Accord was named the best midsized car for resale value for 2018 by the Kelley Blue Book (Kelley Blue Book website). The file AutoResale contains mileage, age, and selling price for a sample of 33 Honda Accords.

a. Develop an estimated regression equation that predicts the selling price of a used Honda Accord given the mileage and age of the car.

b. Is multicollinearity an issue for this model? Find the correlation between the independent variables to answer this question.

c. Use the F test to determine the overall significance of the relationship. What is your conclusion at the .05 level of significance?

d. Use the t test to determine the significance of each independent variable. What is your conclusion at the .05 level of significance?

e. Estimate the selling price of a four-year-old Honda Accord with mileage of 40,000 miles.

f. Develop a 95% confidence interval for the selling price of a car with the data in part .

g. Develop a 95% prediction interval for the selling price of a particular car having the data in part.

Price	Mileage	Age
16998	35000	3
17599	16000	3
15998	42000	3
15998	61000	4
11599	102000	7
13998	109000	4
14998	60000	5
11599	88000	9
12599	58000	8
14998	27000	6
15998	32000	4
11599	95000	8
10499	123000	8
14599	54000	5
10599	68000	11
16998	40000	4
20998	7000	1
11599	81000	9
12599	70000	6
13599	86000	5
11599	92000	7
9599	120000	10
18998	20000	2
12599	63000	7
12599	70000	6
10998	88000	10
11998	86000	6
12998	60000	6
17599	45000	2
9998	96000	11
9998	60000	11
16998	36000	2

Answer 1