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=a+BAGE+YMIL+8ENG 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:

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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=a+BAGE+YMIL+8ENG
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
0.3175
0.3586
0.6196
AGE
0.2124
0.5042
MIL
-0.7527
-2.0991
**
ENG
4.8124
7.7664
0.0000
Analysis of Variance
Source
DF
SS
MS
F
Regression
3
413.1291
138.7097
0.00
***
Error
50
457.7607
2.2888
Total
53
Transcribed Image Text: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=a+BAGE+YMIL+8ENG 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 0.3175 0.3586 0.6196 AGE 0.2124 0.5042 MIL -0.7527 -2.0991 ** ENG 4.8124 7.7664 0.0000 Analysis of Variance Source DF SS MS F Regression 3 413.1291 138.7097 0.00 *** Error 50 457.7607 2.2888 Total 53
a) What is dependent and independent variables?
b) Fully write out the regression equation
c) Fill in the missing values *', ***', and ****
d) Hence test whether 8 is significant. Give reasons for your answer.
e) Perform the F Test making sure to state the null and alternative hypothesis.
f) Given an interpretation of the term “R-sq" and comment on its value.
Transcribed Image Text:a) What is dependent and independent variables? b) Fully write out the regression equation c) Fill in the missing values *', ***', and **** d) Hence test whether 8 is significant. Give reasons for your answer. e) Perform the F Test making sure to state the null and alternative hypothesis. f) Given an interpretation of the term “R-sq" and comment on its value.
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