Researchers at a car resale company are trying to build a model to predict a car’s 4-year resale value (in thousands of dollars) from several predictor variables. The variables theyselected follow.a) What is the equation of the least-squares regression line? A particular car (not atruck) cost $40,000 and has an engine of 3.8 liters. What do you predict the 4-year resalevalue of this car will be?b) Use α = 0.05 to test the significance of β1. Should x1 be dropped from the model?c) Test if there exists any linear relationship between the dependent variable and anyof the independent variables, i.e., test H0 : B1=B2=B3= 0 at 5% significance level. Model1EngineData were collected on cars of different models made by different manufacturers. SPSSoutput for the least-squares regression model is given below.Model1Model1R.962RegressionResidualTotal(Constant)TypePriceEngineModel:TypePriceModel SummaryR Square.9260 if the vehicle is a car 1 if the vehicle is atruckThe price of the vehicle in thousands ofdollarsThe size of the engineSum ofSquares df14568.64231170.761 11515739.404 118BANOVA897643.874-1.893AdjustedR Square.924UnstandardizedCoefficientsCoefficientsMean SquareStd. Error,900717.028.386Std. Error ofthe Estimate3.191FSig4856.214 477.010 .00010.18195% Confidence Interval for BLower Bound Upper Bound-.8852.6792.064930-1.129-.777.817-2.658Y₁ = Bo + B₁ X₁1 + B₂ X2i + B3 X31 + EiwhereY₁ = 4-year resale value, X₁1 = Type, X₂i = Price, X31 = EngineBased on the SPSS output, answer the following questions:

Answered: Researchers at a car resale company are…

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

Related questions

Question

Researchers at a car resale company are trying to build a model to predict a car’s 4-
year resale value (in thousands of dollars) from several predictor variables. The variables they
selected follow.

a) What is the equation of the least-squares regression line? A particular car (not a
truck) cost $40,000 and has an engine of 3.8 liters. What do you predict the 4-year resale
value of this car will be?

b) Use α = 0.05 to test the significance of β1. Should x1 be dropped from the model?

c) Test if there exists any linear relationship between the dependent variable and any
of the independent variables, i.e., test H0 : B1=B2=B3= 0 at 5% significance level.