Question
An automobile rental company wants to predict the yearly maintenance expense ( Y ) for an automobile using the number of miles driven during the
An automobile rental company wants to predict theyearly maintenance expense (Y) for an automobile using thenumber of miles driven during the year (x1) and theage of the car (x2), in years) at the beginning of the year. The company has gathered the data on 10 automobiles and run a regression analysis with the results shown below:
Summary measures | ||||
---|---|---|---|---|
Multiple R | 0.9689 | |||
R-Square | 0.9387 | |||
Adj R-Square | 0.9212 | |||
StErr of Estimate | 72.218 | |||
Regression coefficients | ||||
Coefficient | Std Err | t-value | p-value | |
Constant | 33.796 | 48.181 | 0.7014 | 0.5057 |
Miles Driven | 0.0549 | 0.0191 | 2.8666 | 0.0241 |
Age of car | 21.467 | 20.573 | 1.0434 | 0.3314 |
Use the information above tospecify the linear regression equation andinterpret each of the estimated regressioncoefficients of the regression model. Is there anyvariable that we need to consider excluding?Explain why you think so
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