HWK 18 - Regression 1 46955693.08 46955693.08 12.96...

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Homework #17 Problem # 7 on Pg 574 Business Issue Reliablity of cars and their prices. Business Question Do more reliable cars cost more? If so extimate the price for an upscale sedan that has a good reliablity rating. Data a sample of 15 upscale sedans rated on a scale of 1-5 with 5 being the best from consumer reports February 2004. Analysis Ho: Beta1 = 0 yhat = b0 + b1 * x where yhat= price Alpha = .05 SUMMARY OUTPUT Regression Statistics Multiple R 0.71 R Square 0.5 Adjusted R Square 0.46 Standard Error 1903.78 Observations 15 ANOVA df SS MS F Significance F
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Unformatted text preview: Regression 1 46955693.08 46955693.08 12.96 Residual 13 47116825.86 3624371.22 Total 14 94072518.93 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 40639.35 1234.78 32.91 37971.78 43306.93 X Variable 1-1301.2 361.51-3.6-2082.18-520.21 Conclusion Reject Ho Business Answer According to the sample taken, more reliable cars do cost more. estimated sellng price would be 40639.35 - 1301.2 * reliabilty rating Ha: Beta 1 2 4 6 8 10 12 2 4 6 8 10 12 cars...
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HWK 18 - Regression 1 46955693.08 46955693.08 12.96...

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