1 Problem 1. The cost of a previously owned car depends upon factors such as make and model, model year, mileage, co To investigate the relationship between the car's mileage and the sales price, data were collected on the mileage and the sale price for 10 private sales of model year 2000 Honda Accords (Pr Miles (1000s) 90 59 66 87 90 106 94 57 138 87 Price ($1000s) 7 7.5 6.6 7.2 7 5.4 6.4 7 5.1 7.2 a) Using Excel Develop a scatter diagram with miles as the independent variable. b) What does the scatter diagram developed in part (a) indicate about the relationship between the two c) Use the least squares method to develop the estimated regression equation. d) Provide an interpretation for the slope of the estimated regression equation (the coefficient of the ind del, model year, mileage, condition, and whether the car is purchased from a dealer or from a private seller. ata ear 2000 Honda Accords (PriceHub website, October 2008). able. ationship between the two variables? n. n (the coefficient of the independent variable). Q2 Problem 2. Advertising The owner of Showtime Movie Theaters, Inc., would like to estimate weekly gross revenue as a fu follow Weekly Gross Revenue ($1000s) 96 90 95 92 95 94 94 94 Newspaper Television Adveriting Advertising ($1000) ($1000) 5 1.5 2 2 4 1.5 2.5 2.5 3 3.3 3.5 2.3 2.5 4.2 3 2.5 a) Develop an estimated regression equation with both television advertising and newspaper advertising as t variables. b) Interpret the estimated coefficients c) Discuss the quality of the estimated model d) Test for the overall significance of the variables used. e) Use a significance level of =0.05 to test the significance of X1. Should x1 be dropped from th f) Use a significance level =0.05 to test the significance of X2. Should x2 be dropped from the m kly gross revenue as a function of advertising expenditure. Historical data for a sample of eight weeks newspaper advertising as the independent d x1 be dropped from the model? 2 be dropped from the model? \f