Question
In: Statistics and Probability
An automotive sales manager wishes to examine the relationship between age (years) and sales price ($)...
An automotive sales manager wishes to examine the relationship between age (years) and sales price ($) for a certain model of used automobile. The accompanying data table contains data for a sample of this model of automobile that were listed for sale at a car shopping website. Perform a square-root transformation of the dependent variable (price). Using the transformed dependent variable and the age as the independent variable, perform a regression analysis.
| Age | Price ($) |
| 13 | 3501 |
| 13 | 5378 |
| 13 | 3373 |
| 12 | 4954 |
| 12 | 6506 |
| 12 | 5948 |
| 11 | 5463 |
| 11 | 6286 |
| 11 | 6874 |
| 10 | 7631 |
| 10 | 6411 |
| 10 | 6203 |
| 9 | 6248 |
| 9 | 8010 |
| 9 | 6804 |
| 8 | 7456 |
| 8 | 8518 |
| 8 | 6930 |
| 7 | 7525 |
| 7 | 8937 |
| 7 | 8800 |
| 6 | 8076 |
| 6 | 9707 |
| 6 | 8903 |
| 5 | 11562 |
| 5 | 9428 |
| 5 | 9910 |
| 4 | 11000 |
| 4 | 12924 |
| 4 | 12074 |
| 3 | 11980 |
| 3 | 13526 |
| 3 | 12492 |
| 2 | 14465 |
| 2 | 13833 |
| 2 | 12910 |
| 1 | 18955 |
| 1 | 15724 |
| 1 | 17571 |
a. State the regression equation. (please show how to find this in excel, when I have gone into excel-data-regression-insert y and x values, I am not getting the right variables. Is there another step?
Determine how to find the test statistic and adjusted r^2
Solutions
Expert Solution
1. Bring data in to excel sheet
2.Select both x and y variable and insert scatter plot chart. Select any data point in the excel and add trend line. In the format trend line option choose "Linear" and also select "Display an equation on chart" & "Disaplay R-squared"
Regression Equation: 15805 - 928.95 x
R-squared: 0.8852
Anoth way to get the summary output:
Go to data tab--> Data analysis --> choose Regression
Result:
test statistic:
intercept: 36.20
age: -16.889
orchestra answered 1 year agoRelated Solutions
You would like to examine the relationship between the age and price for used cars sold...
You would like to examine the relationship between the age and
price for used cars sold in the last year by a car dealership
company.
Here is the table of the data:
Car Age (in years)
Price (in dollars)
3
8100
4
6300
4
5700
5
4500
7
4200
7
4100
8
3800
9
3400
10
2100
11
1800
12
1500
If you want to estimate the price of the cars based on the cars
age in years, which variable...
A researcher wishes to examine the relationship between wage earned and educational level of workers. For...
A researcher wishes to examine the relationship between wage
earned and educational level of workers. For a sample of 4000
workers she has data on hourly earnings (measured in Dollar), age
of the worker (in years), worker’s gender, years of experience,
number of years with the present employer, size of the firm in
which the worker is employed, and highest educational qualification
(with 4 classifications: no qualification, secondary school
certificate, bachelor degree or PhD)
Explain how you would set up...
A researcher wishes to examine the relationship between wage earned and educational level of workers. For...
A researcher wishes to examine the relationship between wage
earned and educational level of workers. For a sample of 4000
workers she has data on hourly earnings (measured in SAR), age of
the worker (in years), worker’s gender, years of experience, number
of years with the present employer, size of the firm in which the
worker is employed, and highest educational qualification (with 4
classifications: no qualification, secondary school certificate,
bachelor degree or PhD)
Explain how you would set up...
A researcher wishes to examine the relationship between wage earned and educational level of workers. For...
A researcher wishes to examine the relationship between wage
earned and educational level of workers. For a sample of 4000
workers she has data on hourly earnings (measured in SAR), age of
the worker (in years), worker’s gender, years of experience, number
of years with the present employer, size of the firm in which the
worker is employed, and highest educational qualification (with 4
classifications: no qualification, secondary school certificate,
bachelor degree or PhD)
Explain how you would set up...
A researcher wishes to examine the relationship between wage earned and educational level of workers. For...
A researcher wishes to examine the relationship between wage
earned and educational level of workers. For a sample of 4000
workers she has data on hourly earnings (measured in SAR), age of
the worker (in years), worker’s gender, years of experience, number
of years with the present employer, size of the firm in which the
worker is employed, and highest educational qualification (with 4
classifications: no qualification, secondary school certificate,
bachelor degree or PhD)
Explain how you would set up...
A researcher wishes to examine the relationship between wage earned and educational level of workers. For...
A researcher wishes to examine the relationship between wage
earned and educational level of workers. For a sample of 4000
workers she has data on hourly earnings (measured in SAR), age of
the worker (in years), worker’s gender, years of experience, number
of years with the present employer, size of the firm in which the
worker is employed, and highest educational qualification (with 4
classifications: no qualification, secondary school certificate,
bachelor degree or PhD)
Explain how you would set up...
A company would like to examine the linear relationship between the age and credit score of...
A company would like to examine the linear relationship between
the age and credit score of an individual. The following table
shows the credit scores and ages of 5 randomly selected people.
These data have a sample correlation coefficient, rounded to three
decimal places, of
0.973.
Using this data and
α=0.10,
test if the population correlation coefficient between a
person's age and credit score is different than zero. What
conclusions can you draw?
Age
32
24
52
21
34
Credit...
manager wishes to determine the relationship between the number of miles traveled (in hundreds of miles)...
manager wishes to determine the relationship between the number
of miles traveled (in hundreds of miles) by her
sales representatives and their amount of sales (in
thousands of dollars) per month. Complete the
linear regression test below in order to predict the amount of
sales if the sales representative traveled 1,300 miles?
By visual observation of the scatter plot, does the data appear
linear?
Null Hypothesis:
Alternative Hypothesis:
What is the value of r?
What are the critical values for...
In order to examine the relationship between the selling price of a used car and its...
In order to examine
the relationship between the selling price of a used car and its
age, an analyst uses data from 20 recent transactions and estimates
Price = β0 + β1 Age +
ε. A portion of the regression results is shown in the
accompanying table
Coefficients
Standard Error
t Stat
p-value
Intercept
21,266.93
733.44
23.84
4.55E+15
Age
–1,201.23
128.96
2.46E+08
a.
Specify the competing
hypotheses in order to determine whether...
In order to examine the relationship between the selling price of a used car and its...
In order to examine the relationship between the selling price
of a used car and its age, an analyst uses data from 20 recent
transactions and estimates Price = ?0 +
?1 Age + ?. A portion of the
regression results is shown in the accompanying table
Coefficients
Standard Error
t Stat
p-value
Intercept
21,187.96
740.41
25.85
1.10E+15
Age
–1,207.22
127.93
2.45E+08
a.
Specify the competing hypotheses in order to determine whether...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Create 5 short-term plan of technology projects that you can perform outside of an I.T. department...
- Derek plans to retire on his 65th birthday. However, he plans to work part-time until he...
- Toady and Froggy were running a vegan cafe together. The business was having financial difficulties.Betelguese, who...
- 1. The following questions concern Jesse Gelsinger who suffered from partial OTC. a. In the...
- Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales...
- TzeMay was one of the first women engineering students at ABC University. She graduated in 1995...
- Use the following information to calculate these various solvency measures: a) NWC, B) WCR, c) Current...
ADVERTISEMENT