Question

The data below contains mileage, age, and selling price for a sample of 33 sedans. Price Mileage Age Price Mileage Age Price Mileage Age 16,998 35,000 11,599 95,000 18,998 20,000 2 17,599 16,000 3 9,499 123,000 8 12,599 63,000 7 15,998 42,000 3 14,599 54,000 5 12,599 70,000 15,998 60,000 4 10,599 68,000 10 10,998 88,000 10 11,599 102,000 16,998 40,000 4 11,998 86,000 6 12,998 109,000 4 20,998 7,000 11,998 60,000 6 14,998 60,000 11,599 80,000 9 17,599 45,000 2 11,599 88,000 12,599 70,000 6 9,998 95,000 11 12,599 58,000 13,599 86,000 5 9,998 60,000 11 14,998 27,000 6 11,599 92,000 7 16.998 36,000 15,998 32,000 9,599 120,000 10 17,599 45,000 2 (a) Develop an estimated regression equation that predicts the selling price of a used Honda Accord given the mileage and age of the car. (Round your numerical values to two decimal places. Let x, represent mileage, x2 represent age, and y represent the selling price.) (b) Is multicollinearity an issue for this model? Find the correlation between the independent variables to answer this question.(Round your answer to two decimal places.) The correlation between age and mileage is Select an issue. Since this is 2 0.70, we conclude that multicollinearity 17 (c) Use the F test to determine the overall significance of the relationshi p. State the null and alternative hypotheses. H: All the parameters are not equal to zero. o = = gPH H: One or more of the parameters is not equal to zero. O Ho: One or more of the parameters is not equal to zero. Calculate the test statistic. (Round your answer to two decimal places.) Calculate the p-value. (Round your answer to four decimal places.) p-value What is your conclusion at the 0.05 level of significance? Reject Ho. There is sufficient evidence to conclude that there is a significant relationship. Reject Ho. There is insufficient evidence to conclude that there is a significant relationship. O Do not reject Ho There is sufficient evidence to conclude that there is a significant relationship. Do not reject H. There is insufficient evidence to conclude that there is a significant relationship. (d) Use the t test to determine the significance of the independent variable mileage. State the null and alternative hypotheses. 0 O Ho: P 0 # 0 0 Find the value of the test statistic for B,. (Round your answer to two decimal places.) Find the p-value for B. (Round your answer to four decimal places.) p-value What is your conclusion at the 0.05 level of significance? Reject Ho. There is sufficient evidence to conclude that mileage is a significant factor OReject Ho. There is insufficient evidence to conclude that mileage is a significant factor. O Do not reject Ho: There is sufficient evidence to conclude that mileage is a significant factor Do not reject Ho There is insufficient evidence to conclude that mileage is a significant factor Use the t test to determine the significance of the independent variable age. State the null and alternative hypotheses. o = g:H o g :H o z gH o > g:H os :0H Find the value of the test statistic for B,. (Round your answer to two decimal places.) Find the p-value for p. (Round your answer to four decimal places.) p-value What is your conclusion at the 0.05 level of significance? OReject Ho. There is sufficient evidence to conclude that age is a significant factor Reject Ho. There is insufficient evidence to conclude that age is a significant factor Do not reject Ho. There is sufficient evidence to conclude that age is a significant factor O Do not reject Ho There is insufficient evidence to conclude that age is a significant factor

Answer 1

A.dd 1A-nge - 649 ae SE COed Predictor Constant iileage 20477-5| S6. 62 O. 4648.88 SB15.8 3-5q 1 93. 18 B-Sq(adh) = 92.7 alysds of vardance MS SOurce Regressicn Residual Error 30 Total 2271148494 135574248 203.82 0.000 19974942 32|||291123439 665331| Sea s Source milleage 920k363 age Correlationsmilleage age Pearson correlati P-Value = 0.ddd AAI==CHEAAg.

DATE: Ans a) = 20477 o. 0440 X 4-selling prce mileage Age b) CoTrelatim betr age and mileage 2muticollineaihy -649 x2 XI X2 O.673 iusue nat au are of th e Pabametes HI Ome nst equal to zemo Telt statistic Pvalue 203.62 0.000 Reject Ho These is suffiieut evideuce to significaut relationekip COnclude HAat Hhece id Test for Miteage d) HO: BI 0 HI BIo Test stati ctic firr B 2 . - 6.76 Puatue J. Reject Ho There sufcient edence to conclude that milesge e factve Tent for Age Ho: B20 HI B20 Feat sta st'c for R2. Aralue Reiect Ho There u sufftieut auidene o comelude that -9.51 O.000 is significant tactor age