The owner of a car dealer store for Sport/GT cars in Tampa is targeting a very e

Question

The owner of a car dealer store for Sport/GT cars in Tampa is targeting a very exclusive market of high speed upper scale Sport/GT customers with an offer of pre-owned vehicles. He knows from industry research that Customer rating satisfaction is driven by price and speed at ¼ mile. He hires you as a statistician to investigate how these characteristics affect customer rating (and therefore car sales).

The variable PreOwned =1 if a car is been previously owned, 0 otherwise.

The regression equation when the car is pre-owned is?

Coefficientsa Unstandardized Standardized Coefficients Coefficients Sig. Std. Beta Error Constant) 1995.888 445.138 4.484 003 2.619 .034 1.207 .267 1.918 .097 SpeedQtrMile 15.748 6.012 .916 Price 6.720 5.570 455 PreOwned -237.976 124.062 -.471 a. Dependent Variable: Rating

Explanation / Answer

For a Pre owned car,

Factor Preowned = 1

Hence,

The regression equation will be:

Rating = 1995.888 + 15.748 (SpeedQtrMile) - 6.720 (Price) - 237.976(1)

Rating = 1757.912 + 15.748 (SpeedQtrMile) - 6.720 (Price)

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