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A car dealer company wants to study the difference between the second-hand car prices with manual and automatic transmission. An analyst in this company collected
A car dealer company wants to study the difference between the second-hand car prices with manual and automatic transmission. An analyst in this company collected data for the 146 sold cars. Carprice is the sale price of the vehicle (in thousands of dollars), KmDriven is total distance that the car has been driven in thousands of km, and TRANSMISSION is an indicator variable coded as 1 if the car has automatic transmission, and 0 for a car with manual transmission. A. Develop a regression equation for the car price using KMdriven and transmission as predictors. B. What would be the car price, on average, for an automatic transmission car which has been driven 55000 km ? What would be the car price, on average, for a manual transmission car which has been driven 55000 km? C. Develop a regression equation for the car price using all four predictors D. Considering the full model, is there any useful predictors in predicting the car prices? State the hypothesis to be tested, the test statistics ( not p-value), the decision rule, and your decision. Use a 5% level of significance. E. Is there a difference between the intercept of the linear regression models representing the relationship of KmDriven, mileage, and Maxpower with Carprice for automatic and manueal transmission types ? State the hypothesis to be tested, the tests statistics, the decision rule, and your decision use a 5% level of significance. F. Given KmDriven and TRANSMISSION in the model, is there a difference, on average, in car prices when we add mileage, and Maxpoewr into the model? State the hypothesis to be tested, the test statistics, the decision rules, and your decision. Use a 5% level of significance.
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