The Honda Accord was named the best midsized car for resale value for 2018 by the Kelley Blue Book (Kelley Blue Book website). The file AutoResale contains mileage, age, and selling price for a sample of 33 Honda Accords. Click on the datafile logo to reference the data. DATA file a. Develop an estimated regression equation that predicts the selling price of a used Honda Accord given the mileage and age of the car (to 2 decimals). Enter negative value as negative number. Selling price= 20385.25 + -0.04 Mileage + -686.34 Age b. Is multicollinearity an issue for this model? Find the correlation between the independent variables to answer this question (to 2 decimals). The correlation between age and mileage is 0.668 I. Since the correlation between the independent variables is less than 0.70, we conclude that multicollinearity is an issue. II. Since the correlation between the independent variables is less than 0.70, we conclude that multicollinearity is not an issue. III. Since the correlation between the independent variables is greater than 0.70, we conclude that multicollinearity is an issue. IV. Since the correlation between the independent variables is greater than 0.70, we conclude that multicollinearity is not an issue. II c. Use the F test to determine the overall significance of the relationship (to 2 decimals). What is your conclusion at the 0.05 level of significance? Use F table. Overall Model F value 290.84 p-value less than 0.01 Significance at a = 0.05 significant v

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Price Mileage
16998
35000
17599
16000
15998
42000
15998
61000
11599 102000
13998
109000
14998
60000
11599
88000
12599 58000
14998
27000
15998
32000
11599
95000
10499 123000
14599
54000
10599
68000
16998
40000
20998
7000
11599
81000
12599
70000
13599
86000
11599
92000
9599 120000
18998
20000
12599
63000
12599
70000
10998
88000
11998 86000
12998 60000
17599
45000
9998
96000
9998
60000
16998
36000
17599 45000
Age
3
3
3
st
4
7
st
4
5
9
8
6
st
8
00
5
11
4
1
9
65
7
10
2
7
6
10
6
162
11
11
2
2
Transcribed Image Text:Price Mileage 16998 35000 17599 16000 15998 42000 15998 61000 11599 102000 13998 109000 14998 60000 11599 88000 12599 58000 14998 27000 15998 32000 11599 95000 10499 123000 14599 54000 10599 68000 16998 40000 20998 7000 11599 81000 12599 70000 13599 86000 11599 92000 9599 120000 18998 20000 12599 63000 12599 70000 10998 88000 11998 86000 12998 60000 17599 45000 9998 96000 9998 60000 16998 36000 17599 45000 Age 3 3 3 st 4 7 st 4 5 9 8 6 st 8 00 5 11 4 1 9 65 7 10 2 7 6 10 6 162 11 11 2 2
The Honda Accord was named the best midsized car for resale value for 2018 by the Kelley Blue Book (Kelley Blue Book website). The file AutoResale contains mileage, age, and selling price for a sample of 33 Honda Accords.
Click on the datafile logo to reference the data.
DATA file
a. Develop an estimated regression equation that predicts the selling price of a used Honda Accord given the mileage and age of the car (to 2 decimals). Enter negative value as negative number.
Selling price = 20385.25 +
-0.04 Mileage +
-686.34 Age
b. Is multicollinearity an issue for this model? Find the correlation between the independent variables to answer this question (to 2 decimals).
The correlation between age and mileage is
I. Since the correlation between the independent variables is less than 0.70, we conclude that multicollinearity is an issue.
II. Since the correlation between the independent variables is less than 0.70, we conclude that multicollinearity is not an issue.
III. Since the correlation between the independent variables is greater than 0.70, we conclude that multicollinearity is an issue.
IV. Since the correlation between the independent variables is greater than 0.70, we conclude that multicollinearity is not an issue.
II
c. Use the F test to determine the overall significance of the relationship (to 2 decimals). What is your conclusion at the 0.05 level of significance? Use F table.
Mileage
F value
Age
290.84
Overall Model
significant
d. Use the t test to determine the significance of each independent variable (to 2 decimals). What is your conclusion at the 0.05 level of significance? Use t table. Enter negative value as negative number.
0.668
t value
-6.98
-12.51
p-value
less than 0.01
p-value
less than 0.01
less than 0.01
Significance
at a = 0.05
V
Significance
at a = 0.05
significant
significant
Transcribed Image Text:The Honda Accord was named the best midsized car for resale value for 2018 by the Kelley Blue Book (Kelley Blue Book website). The file AutoResale contains mileage, age, and selling price for a sample of 33 Honda Accords. Click on the datafile logo to reference the data. DATA file a. Develop an estimated regression equation that predicts the selling price of a used Honda Accord given the mileage and age of the car (to 2 decimals). Enter negative value as negative number. Selling price = 20385.25 + -0.04 Mileage + -686.34 Age b. Is multicollinearity an issue for this model? Find the correlation between the independent variables to answer this question (to 2 decimals). The correlation between age and mileage is I. Since the correlation between the independent variables is less than 0.70, we conclude that multicollinearity is an issue. II. Since the correlation between the independent variables is less than 0.70, we conclude that multicollinearity is not an issue. III. Since the correlation between the independent variables is greater than 0.70, we conclude that multicollinearity is an issue. IV. Since the correlation between the independent variables is greater than 0.70, we conclude that multicollinearity is not an issue. II c. Use the F test to determine the overall significance of the relationship (to 2 decimals). What is your conclusion at the 0.05 level of significance? Use F table. Mileage F value Age 290.84 Overall Model significant d. Use the t test to determine the significance of each independent variable (to 2 decimals). What is your conclusion at the 0.05 level of significance? Use t table. Enter negative value as negative number. 0.668 t value -6.98 -12.51 p-value less than 0.01 p-value less than 0.01 less than 0.01 Significance at a = 0.05 V Significance at a = 0.05 significant significant
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