47. Today's marketplace offers a wide choice to buyers of sport utility vehicles (SUVs) and pickup trucks. An important factor to many buyers is the resale value of the vehicle. The following table shows the resale value (%) after two years and the suggested retail price for 10 SUVs, 10 small pickup trucks, and 10 large pickup trucks (Kiplinger's New Cars & Trucks 2000 Buyer's Guide).

a. Develop an estimated regression equation that can be used to predict the resale value given the suggested retail price. At the .05 level of significance, test for a significant relationship.

b. Did the estimated regression equation developed in part

(a) provide a good fit to the data? Explain.

c. Develop an estimated regression equation that can be used to predict the resale value given the suggested retail price and the type of vehicle.

d. Use the F test to determine the significance of the regression results. At a .05 level of significance, what is your conclusion?

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Chevrolet Blazer LS Type of Vehicle Sport utility Suggested Retail Price ($) Resale Value (%) 19,495 55 Ford Explorer Sport Sport utility 20,495 57 GMC Yukon XL 1500 Sport utility 26,789 67 Honda CR-V Sport utility 18,965 65 Isuzu VehiCross Sport utility 30,186 62 Jeep Cherokee Limited Sport utility 25,745 57 Mercury Mountaineer Monterrey Sport utility 29,895 59 Nissan Pathfinder XE Sport utility 26,919 54 Toyota 4Runner Sport utility 22,418 55 Toyota RAV4 Sport utility 17,148 55 Chevrolet S-10 Extended Cab Small pickup 18,847 46 Dodge Dakota Club Cab Sport Small pickup 16,870 53 Ford Ranger XLT Regular Cab Small pickup 18,510 48 Ford Ranger XLT Supercab Small pickup 20,225 55 GMC Sonoma Regular Cab Small pickup 16,938 44 Isuzu Hombre Spacecab Small pickup 18,820 41 Mazda B4000 SE Cab Plus Small pickup 23,050 51 Nissan Frontier XE Regular Cab Small pickup 12,110 51 Toyota Tacoma Xtracab Small pickup 18,228 49 Toyota Tacoma Xtracab V6 Small pickup 19,318 50 Chevrolet K2500 Full-size pickup 24,417 60 Chevrolet Silverado 2500 Ext Full-size pickup 24,140 64 Dodge Ram 1500 Full-size pickup 17,460 54 Dodge Ram Quad Cab 2500 Full-size pickup 32,770 63 Dodge Ram Regular Cab 2500 Full-size pickup 23,140 59 Ford F150 XL Full-size pickup 22,875 58 Ford F-350 Super Duty Crew Cab XL Full-size pickup 34.295 64 GMC New Sierra 1500 Ext Cab Full-size pickup 27,089 68 Toyota Tundra Access Cab Limited Toyota Tundra Regular Cab Full-size pickup 25,605 53 Full-size pickup 15,835 58