Homework Help is Here – Start Your Trial Now!
Math
Statistics
20. A data set has the annual revenue for 15 rental car companies (in units of millions of dollars), which is the response variable, as a function of the number of cars in use (in units of thousands of vehicles) and locations (in units of hundreds of locations.) The results of a linear regression model with both predictors included gives: The regression equation is Revenue = 10.6 + 0.894 Cars - 0.191 Location Predictor T P Constant Cars Coef SE Coef 10.597 8.552 0.89427 0.0774 1.24 0.239 11.55 0.000 Location -0.1914 0.1026 -1.87 0.087 Standard Error = 20.77 R = 94.2% Adjusted R = 93.2% a.) Estimate the revenue for a company with twelve thousand cars and one hundred locations. b.) The actual revenue for the company in part (a.) was $28 million. Is this an unusually high revenue for a company of that size? Explain your answer in a sentence. c.) If you were to drop one of the predictors from this model, which one would you drop? Explain why in a sentence.

20. A data set has the annual revenue for 15 rental car companies (in units of millions of dollars), which is the response variable, as a function of the number of cars in use (in units of thousands of vehicles) and locations (in units of hundreds of locations.) The results of a linear regression model with both predictors included gives: The regression equation is Revenue = 10.6 + 0.894 Cars - 0.191 Location Predictor T P Constant Cars Coef SE Coef 10.597 8.552 0.89427 0.0774 1.24 0.239 11.55 0.000 Location -0.1914 0.1026 -1.87 0.087 Standard Error = 20.77 R = 94.2% Adjusted R = 93.2% a.) Estimate the revenue for a company with twelve thousand cars and one hundred locations. b.) The actual revenue for the company in part (a.) was $28 million. Is this an unusually high revenue for a company of that size? Explain your answer in a sentence. c.) If you were to drop one of the predictors from this model, which one would you drop? Explain why in a sentence.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
20 solve all parts plzz
20. A data set has the annual revenue for 15 rental car companies (in units of millions of dollars), which is the response variable, as a function of the number of cars in use (in units of thousands of vehicles) and locations (in units of hundreds of locations.) The results of a linear regression model with both predictors included gives: The regression equation is Revenue = 10.6 + 0.894 Cars - 0.191 Location Predictor SE Coef Coef 10.597 8.552 P Constant Cars Location 1.24 0.239 11.55 0.000 -1.87 0.087 0.89427 0.0774 -0.1914 0.1026 Standard Error = 20.77 R = 94.2% Adjusted R? = 93.2% a.) Estimate the revenue for a company with twelve thousand cars and one hundred locations. b.) The actual revenue for the company in part (a.) was $28 million. Is this an unusually high revenue for a company of that size? Explain your answer in a sentence. c.) If you were to drop one of the predictors from this model, which one would you drop? Explain why in a sentence. d.) When a regression was run with revenue as response and location as the only predictor, the p- value for the coefficient was 0.004, and the R2 was 78%. Why might this happen?
Transcribed Image Text:20. A data set has the annual revenue for 15 rental car companies (in units of millions of dollars), which is the response variable, as a function of the number of cars in use (in units of thousands of vehicles) and locations (in units of hundreds of locations.) The results of a linear regression model with both predictors included gives: The regression equation is Revenue = 10.6 + 0.894 Cars - 0.191 Location Predictor SE Coef Coef 10.597 8.552 P Constant Cars Location 1.24 0.239 11.55 0.000 -1.87 0.087 0.89427 0.0774 -0.1914 0.1026 Standard Error = 20.77 R = 94.2% Adjusted R? = 93.2% a.) Estimate the revenue for a company with twelve thousand cars and one hundred locations. b.) The actual revenue for the company in part (a.) was $28 million. Is this an unusually high revenue for a company of that size? Explain your answer in a sentence. c.) If you were to drop one of the predictors from this model, which one would you drop? Explain why in a sentence. d.) When a regression was run with revenue as response and location as the only predictor, the p- value for the coefficient was 0.004, and the R2 was 78%. Why might this happen?
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS