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Question 4: Based upon the results of your analysis, what estimated regression equationwould you recommend using to predict Winnings ($)? Provide an interpretation of the estimatedregression coefficients for this equation.pg. 31
GBU 3311 02 Wins: When Wins increase by 1 unit, winnings will increase by 202245 dollars.Top 2-5: For every unit increase in Top 2-5, there is around 188700 dollars’ increase in winnings.Top 6-10: For every unit increase in Top 6-10, there is an increase of 117071 dollars’ increase inwinningspg. 32
GBU 3311 02 Case Problem 3Finding the Best Car ValueWhen trying to decide what car to buy, real value is not necessarily determined by how muchyou spend on the initial purchase. Instead, cars that are reliable and don’t cost much to own oftenrepresent the best values. But no matter how reliable or inexpensive a car may cost to own, itmust also perform well.To measure value, Consumer Reportsdeveloped a statistic referred to as a value score. The valuescore is based upon five-year owner costs, overall road-test scores, and predicted-reliabilityratings. Five-year owner costs are based upon the expenses incurred in the first five years ofownership, including depreciation, fuel, maintenance and repairs, and so on. Using a nationalaverage of 12,000 miles per year, an average cost per mile driven is used as the measure of five-year owner costs. Road-test scores are the results of more than 50 tests and evaluations and arebased on a 100-point scale, with higher scores indicating better performance, comfort,convenience, and fuel economy. The highest road-test score obtained in the tests conductedby Consumer Reportswas a 99 for a Lexus LS 460L. Predicted-reliability ratings (1 = Poor, 2 =Fair, 3 = Good, 4 = Very Good, and 5 = Excellent) are based upon data from Consumer ReportsAnnual Auto Survey.A car with a value score of 1.0 is considered to be an “average-value” car. A car with a valuescore of 2.0 is considered to be twice as good a value as a car with a value score of 1.0; a carwith a value score of 0.5 is considered half as good as average; and so on. The data for three’