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**** Please show your work 1.) A multiple regression is shown for a data set of

ID: 3431105 • Letter: #

Question

**** Please show your work

1.) A multiple regression is shown for a data set of yachts where the dependent variable is the price in thousands of dollars.

2.) The editors of a national automotive magazine recently studied 30 different automobiles sold in the United States with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway miles per gallon. A number of different independent variables were collected. The following regression output (with some values missing) was recently presented to the editors by the magazine's analysts:

- The standard error of the estimate is a negative value due to the multicollinearity problems in the model.

Explanation / Answer

(1) Null hypothesis: the overall model is not significant.

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(2) R^2= 1-SSE/SST = 1-89.88341785/506.16666667 =0.8224

i.e. 82.24

Answer: The overall multiple regression model explains a significant portion of the variation in highway mileage when tested at a significance level of 0.05.