Homework SourseWhen trying to decide what to buy real value is not necessar
]When trying to decide what to buy, real value is not necessarily determined by how much you spend on the initial purchase. Instead, cars that are reliable and don
Solution
an estimated regression equation:
value Score = 1.289 -3.4753*Cost/Km + 0.0113*Road-Test Score+0.1708*Predicted Reliability + 0.0357*Upscale
Based on the p-value of t tests, we can find that Cost/Km, Road-Test Score, and Predicted Reliability variables are significant. But Upscale variable is not signficant.
| Regression output | confidence interval | |||||
| variables | coefficients | std. error | t (df=49) | p-value | 95% lower | 95% upper |
| Intercept | 1.2890 | 0.1024 | 12.583 | 5.79E-17 | 1.0831 | 1.4948 |
| Cost/Km | -3.4753 | 0.2334 | -14.891 | 8.10E-20 | -3.9443 | -3.0063 |
| Road-Test Score | 0.0113 | 0.0012 | 9.556 | 8.89E-13 | 0.0090 | 0.0137 |
| Predicted Reliability | 0.1708 | 0.0100 | 17.122 | 2.56E-22 | 0.1507 | 0.1908 |
| Upscale | 0.0357 | 0.0295 | 1.209 | .2323 | -0.0236 | 0.0949 |
![]When trying to decide what to buy, real value is not necessarily determined by how much you spend on the initial purchase. Instead, cars that are reliable and](/WebImages/24/when-trying-to-decide-what-to-buy-real-value-is-not-necessar-1060134-1761553693-0.webp "]When trying to decide what to buy, real value is not necessarily determined by how much you spend on the initial purchase. Instead, cars that are reliable and")
