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 tota mileage of the vehicle at the point of sale and ENG = the size of the engine. The sample of data wa processed using MINITAB and the following is an extract of the output obtained: The regression equation is ***** Coef StDev t-ratio p-value Predictor Constant 1.7586 0.2525 6.9648 0.0000 AGE 0.5042 0.2124 0.3175 ** MIL -0.7527 0.3586 -2.0991 7.7664 0.0000 ENG 4.8124 0.6196 R-sq=56.1% R-sq (adj) =59.8% Analysis of Variance MS F Source DF SS *** 0.00 413.1291 138.7097 Regression 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 & 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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