• Treating Cost/Mile as the dependent variable, develop an estimated regression with Family-Sedan and Upscale-Sedan as the independent variables. Discuss your findings.

Answer------




Managerial Report

 Treating Cost/Mile as the dependent variable, develop an estimated regression with
Family-Sedan and Upscale-Sedan as the independent variables. Discuss your findings.

Regression
Statistics
Multiple R 0.10943
R Square 0.011975
Adjusted R -0.00703
Square
Standard 0.104123
Error
Observations 54



ANOVA
df SS MS F Significance
F
Regression 1 0.006833 0.006833 0.630248 0.43087244
Residual 52 0.563767 0.010842
Total 53 0.5706

Significance Standard t Stat P-value
F Error
Intercept 0.665294 0.017857 37.25675 3.53E-39
family sedan -0.02329 0.029342 -0.79388 0.430872

, Since the Upscale Sedan is highly correlated it has been removed from the equation. Therefore,
the regression equation is:

Cost/mile= 0.665 – 0.0233 * Family sedan

 Treating Value Score as the dependent variable, develop an estimated regression equation
using Cost/Mile, Road-Test Score, Predicted Reliability, Family-Sedan, and Upscale-
Sedan as the independent variables.

Regression
Statistics
Multiple R 0.965995
R Square 0.933146
Adjusted R 0.927689
Square
Standard 0.072433
Error
Observations 54

ANOVA
df SS MS F Significance
F
Regression 4 3.58835 0.897088 170.9862 3.9198E-28
Residual 49 0.257081 0.005247
Total 53 3.845431




Coefficients Standard Error t Stat P-value
Intercept 1.238657 0.093432 13.25732 7.92E-18
Cost/Mile -2.06093 0.107697 -19.1363 2.2E-24
Road-Test Score 0.011598 0.001269 9.141064 3.64E-12
Predicted 0.166942 0.010482 15.92664 5.22E-21
Reliability
size -0.01667 0.021945 -0.75961 0.45113


The regression equation: