Beachcomber Ltd in a local car dealership that sells used and new vehicles. The manager of the company wants to know how different variables affect the sales of his vehicles. A random sample of yearly data was taken with the view to testing the model: SALES=?+?AGE+?MIL+?ENG Where SALES= amount that a vehicle is sold for($000’s), AGE = age of the vehicle, MIL= the total mileage of the vehicle at the point of sale and ENG = the size of the engine. The sample of data was processed using MINITAB and the following is an extract of the output obtained: The regression equation is ***** Predictor Coef StDev t-ratio p-value Constant 1.7586 0.2525 6.9648 0.0000 AGE 0.2124 0.3175 * 0.5042 MIL - 0.7527 0.3586 -2.0991 ** ENG 4.8124 0.6196 7.7664 0.0000 Analysis of Variance Source DF SS MS F p Regression 3 413.1291 138.7097 *** 0.00 Error 50 457.7607 2.2888 Total 53 a) What is dependent and independent variables?
Beachcomber Ltd in a local car dealership that sells used and new vehicles. The manager of the
company wants to know how different variables affect the sales of his vehicles. A random sample of
yearly data was taken with the view to testing the model:
SALES=?+?AGE+?MIL+?ENG
Where SALES= amount that a vehicle is sold for($000’s), AGE = age of the vehicle, MIL= the total
mileage of the vehicle at the point of sale and ENG = the size of the engine. The sample of data was
processed using MINITAB and the following is an extract of the output obtained:
The regression equation is *****
Predictor Coef StDev t-ratio p-value
Constant 1.7586 0.2525 6.9648 0.0000
AGE 0.2124 0.3175 * 0.5042
MIL - 0.7527 0.3586 -2.0991 **
ENG 4.8124 0.6196 7.7664 0.0000
Analysis of Variance
Source DF SS MS F p
Regression 3 413.1291 138.7097 *** 0.00
Error 50 457.7607 2.2888
Total 53
a) What is dependent and independent variables?
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