At an auction, a national car rental agency sold 12 comparably equipped

At an auction, a national car rental agency sold 12 comparably equipped

Question # 00050838 Posted By: spqr Updated on: 02/26/2015 01:19 AM Due on: 02/28/2015
Subject Business Topic General Business Tutorials:
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Question 1.1.(TCO E) At an auction, a national car rental agency sold 12 comparably equipped 3-year-old Chevrolet Corsicas. The data on mileage (X) and selling price (Y) are found below.

PRICE

MILEAGE

PREDICT

7000

60000

54000

8500

52000

80000

7000

62000


8900

48000


7600

55000


7200

60000


8500

50000


7800

53000


7200

58000


9000

48000


7200

60000


7700

55000






Correlations: PRICE, Mileage

Pearson correlation of PRICE and Mileage = -0.970
P-Value = 0.000


Regression Analysis: PRICE versus Mileage

The regression equation is
PRICE = 15809 - 0.145 Mileage


Predictor Coef SE Coef T P
Constant 15809.0 635.2 24.89 0.000
Mileage -0.14540 0.01149 -12.66 0.000


S = 188.396 R-Sq = 94.1% R-Sq(adj) = 93.5%


Analysis of Variance

Source DF SS MS F P
Regression 1 5685070 5685070 160.17 0.000
Residual Error 10 354930 35493
Total 11 6040000


Predicted Values for New Observations

New Obs Fit SE Fit 95% CI 95% PI
1 7957.5 55.8 (7833.2, 8081.8) (7519.7, 8395.3)
2 4177.2 291.4 (3527.9, 4826.4) (3404.1, 4950.3)XX

XX denotes a point that is an extreme outlier in the predictors.


Values of Predictors for New Observations

New Obs Mileage
1 54000
2 80000


a. Analyze the above output to determine the regression equation.
b. Find and interpret??1in the context of this problem.
c. Find and interpret the coefficient of determination (r-squared).
d. Find and interpret coefficient of correlation.
e. Does the data provide significant evidence (a = .05) that the mileage can be used to predict the price? Test the utility of this model using a two-tailed test. Find the observed p-value and interpret.
f. Find the 95% confidence interval for mean price of 3-year-old Chevy Corsicas that have 54,000 in mileage. Interpret this interval.
g. Find the 95% prediction interval for the price of a single 3-year-old Chevy Corsica that has 54,000 in mileage. Interpret this interval. .
h. What can we say about the price for a 3-year-old Chevy Corsica that has 80,000 in mileage? (Points : 48)
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  1. spqr
    Tutorial # 00048005 Posted By: spqr Posted on: 02/26/2015 01:21 AM
    Puchased By: 4
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    the least squares slopeand the coefficient of correlation r is ...
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