11Use the data below to answer the following questions 1 Wri

11.Use the data below to answer the following questions  1. Write the regression equation. 2. Interpret the regression constant and regression coefficient, 3. Forecast a value for the dependent variable, Test the significant of the regression coefficient at an alpha level of .05, Test the overall significant of the regression model,and Interpret the coefficient of determination. These questions are to be answered using excel or minitab. Do not solve by hand.

Consumer reports provided road test scores and prices for the following 12 sporty cars

Car                              Price($1000s)                  Road-Test Score

chevrolet cobalt ss               24.5                                 78

Dodge Caliber SRT4            24.9                                 56

Ford Mustang Gt (V8)           29.0                                 73

Honda Civic Si                      21.7                                 78

Mazda RX-8                          31.3                                86

Mini Cooper S                       26.4                                74

Mitsubishi Lancer Evolution 38.1                                83

Nissan Sentra SE-R Spec V 23.3                               66

Suburu Impreza WRX           25.2                               81

Suburu Impreza WRX Sti      37.6                               89

Volkswagen GTI                     24                                  83

Volkswagen R32                    33.6                               83

Solution

MINITAB is USED

Regression Analysis: price versus Roadtest score

Analysis of Variance

Source            DF Adj SS Adj MS F-Value P-Value

Regression         1   102.7 102.71     4.22    0.067

Roadtest score   1   102.7 102.71     4.22    0.067

Error             10   243.7   24.37

Lack-of-Fit      7   136.0   19.43     0.54    0.773

Pure Error       3   107.7   35.89

Total             11   346.4

Model Summary

      S    R-sq R-sq(adj) R-sq(pred)

4.93625 29.65%     22.62%       0.00%

Coefficients

Term             Coef SE Coef T-Value P-Value   VIF

Constant          2.6     12.6     0.21    0.840

Roadtest score 0.331    0.161     2.05    0.067 1.00

Regression Equation

price = 2.6 + 0.331 Roadtest score

11.Use the data below to answer the following questions

1. Write the regression equation.

price = 2.6 + 0.331*Roadtest score

2. Interpret the regression constant and regression coefficient,

Constant =2.6

When road test score is zero, the price is $ 2.6(in 1000) ie = $2600

Regression coefficient =0.331

When there is one test score increases, the price of the car increases by 0.331(in 1000) = $331

3. Forecast a value for the dependent variable,

For the test score =80

The predicted price

price = 2.6 + 0.331*80 =29.08

For the test score =80, the predicted price = 29.08( in1000)= $29080

Test the significant of the regression coefficient at an alpha level of .05,

Calculated t=2.07, P=0.067 > 0.05 level of significance.

The regression coefficient is not significant.

Test the overall significant of the regression model,

Calculated F =4.22, P=0.067 > 0.05 level of significance.

Overall, the regression model is not significant.

Interpret the coefficient of determination.

coefficient of determination = R square =0.2965 or 29.65%

29.65% of variation of information is explained by the regression model or explained by the independent variable road test score.