The accompanying table shows a portion of data consisting of the selling price,
ID: 3218651 • Letter: T
Question
The accompanying table shows a portion of data consisting of the selling price, the age, and the mileage for 20 used sedans.
Determine the sample regression equation that enables us to predict the price of a sedan on the basis of its age and mileage. (Negative values should be indicated by a minus sign. Round your answer to 2 decimal places.)
Predict the selling price of a six-year-old sedan with 68,000 miles. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)
The accompanying table shows a portion of data consisting of the selling price, the age, and the mileage for 20 used sedans.
Explanation / Answer
Using Minitab:
Regression Analysis: Selling Price versus Age, Miles
Analysis of Variance
Source DF Adj SS Adj MS F-Value P-Value
Regression 2 175331202 87665601 22.81 0.000
Age 1 36932823 36932823 9.61 0.007
Miles 1 44168508 44168508 11.49 0.003
Error 17 65327639 3842802
Total 19 240658841
Model Summary
S R-sq R-sq(adj) R-sq(pred)
1960.31 72.85% 69.66% 66.43%
Coefficients
Term Coef SE Coef T-Value P-Value VIF
Constant 21959 1109 19.80 0.000
Age -614 198 -3.10 0.007 1.41
Miles -0.0799 0.0236 -3.39 0.003 1.41
Regression Equation
Selling Price = 21959 - 614 Age - 0.0799 Miles
b)
The slope coefficient of Age is 614.31, which suggests that for every additional year of age, the predicted price of car decreases by $614.31, holding number of miles constant.
c)
Prediction for Selling Price
Regression Equation
Selling Price = 21959 - 614 Age - 0.0799 Miles
Variable Setting
Age 6
Miles 68000
Fit SE Fit 95% CI
12843.8 635.447 (11503.1, 14184.4)
Hope this will be helpful. Thanks and God Bless You :)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.