1 Run a multiple regression that has the maintenance cost as

1)

Run a multiple regression that has the maintenance cost as the dependent variable and the age, miles per month, and Gasoline dummy variable as independent variables.

( You must either submit a screen shot of your output or your actual Excel file with the output as part of the assignment)

Maintenance cost per month (in Gasoline Dumimy (J: Diesel, 1 = 3 Dollars Age (in years) Miles per month

Solution

The regression equation is
maintanence = 89 + 11.1 age + 0.331 miles + 2.1 dummy

Predictor Coef SE Coef T P
Constant 88.7 125.4 0.71 0.483
age 11.135 3.451 3.23 0.002
miles 0.3305 0.1689 1.96 0.057
dummy 2.09 15.14 0.14 0.891

S = 49.0947 R-Sq = 46.9% R-Sq(adj) = 43.1%

Analysis of Variance

Source DF SS MS F P
Regression 3 89527 29842 12.38 0.000
Residual Error 42 101232 2410
Total 45 190759

Source DF Seq SS
age 1 79390
miles 1 10091
dummy 1 46

Unusual Observations

Obs age maintanence Fit SE Fit Residual St Resid
5 7.0 329.00 448.62 11.11 -119.62 -2.50R
27 9.0 380.00 487.42 13.82 -107.42 -2.28R
33 10.0 493.00 533.26 27.46 -40.26 -0.99 X

R denotes an observation with a large standardized residual.
X denotes an observation whose X value gives it large leverage.