http://lectures.mhhe.com/connect/0078020557/Ch14/Algo/q47/Ch14_Q47_V08_Data_File

Question

http://lectures.mhhe.com/connect/0078020557/Ch14/Algo/q47/Ch14_Q47_V08_Data_File.xlsx Selling Price Age Miles
13,632        6           61,524      
13,750        4           54,396      
22,987        1           8,251      
15,332        7           24,862      
16,424        3           22,147      
16,584        5           23,745      
16,969        6           47,378      
18,428        4           16,821      
18,821        3           35,399      
19,882        4           29,623      
11,884        6           55,811      
14,985        5           46,177      
15,947        6           37,046      
16,489        2           45,510      
9,494        6           86,900      
12,978        4           77,245      
15,768        9           59,692      
10,452        10           93,278      
8,915        8           48,255      
11,968        8           42,398      

a.

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.)

   [111formula9.mml] =  +  Age +  Miles.

b. Interpret the slope coefficient of Age.

The slope coefficient of Age is 578.38, which suggests that for every additional year of age, the predicted price of car decreases by $578.38.
The slope coefficient of Age is 0.09, which suggests that for every additional year of age, the predicted price of car decreases by $0.09.
The slope coefficient of Age is 578.38, which suggests that for every additional year of age, the predicted price of car decreases by $578.38, holding number of miles constant.
The slope coefficient of Age is 0.09, which suggests that for every additional year of age, the predicted price of car decreases by $0.09, holding number of miles constant.

c.

Predict the selling price of a six-year-old sedan with 66,000 miles. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)

   [111formula9.mml] = $

10.00 points The accompanying table shows a portion of data consisting of the selling price, the age, and the mileage for 20 used sedans lick here for the Excel Data File Selling Price Age 13,632 13,750 22,987 15,332 16,424 16,584 16,969 18,428 18,821 19,882 11,884 14,985 15,947 16,489 9,494 12,978 15,768 10,452 8,915 11,968 Miles 61,524 54,396 8,251 24,862 22,147 23,745 47,378 16,821 35,399 29,623 55,811 46,177 37,046 45,510 86,900 77,245 59,692 93,278 48,255 42,398 4 4 4 6 4 10 a. 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.) price = Age + Miles. b. Interpret the slope coefficient of Age The slope coefficient of Age is -578.38, which suggests that for every additional year of age, the predicted price of car decreases by $578.38 The slope coefficient of Age is -0.09, which suggests that for every additional year of age, the predicted price of car decreases by $0.09 The slope coefficient of Age is -578.38, which suggests that for every additional year of age, the predicted price of car decreases by $578.38, holding number of miles constant. The slope coefficient of Age is -0.09, which suggests that for every additional year of age, the predicted price of car decreases by $0.09, holding number of miles constant. c. Predict the selling price of a six-year-old sedan with 66,000 miles. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.) price = $ eBook & Resources Estimate the multiple linear regression el and interpret the coefficients

Explanation / Answer

Here we are given 3 data coloumns,

We have to predict price using age an miles .

We use multiple regression here

price = b0+b1 age +b2miles

For multiple regression we cant used excel so we need minitab here ,

In minitab enter 3 coloumns and go to STAT >>>>select regression >>>> select response price and predictors age and miles .

You get this output in minitab ,

Regression Analysis: price versus age, miles

The regression equation is
price = 22197 - 578 age - 0.0877 miles

So part a) answer is ,

price = 22197 - 578 age - 0.0877 miles

b)

here slope co-efficien of age is -518 , here decrease price 518 holding miles contact .

so correct option is C

c)

Here we have to predict price using age=6 and miles =66000

plug age=6 and miles =66000 in regression equation

price = 22197 - 578 age - 0.0877 mile

        = 22197 -578(6) - 0.00877 (66000)

        =18,150.18

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.