Question
Roger Gallagher owns a used car lot that deals solely in used Corvettes. He wants to develop a regression model to help predict the price
Roger Gallagher owns a used car lot that deals solely in used Corvettes. He wants to develop a regression model to help predict the price he can expect to receive for the cars he owns. He collected the data found in table below describing the mileage, model year, presence of a T-top, and selling price of a number of cars he has sold in recent months. LetYrepresent the selling price,
X1 the mileage (updated),
X2 the model year (expressed as number of years since 1968), and
X3 the presence (or absence) of a T-top. Note that
X3= 1 indicates that the car has a T-Top and
X3= 0 indicates the car does not have a T-Top.
Mileage (in thousands of miles) | Year | T-top | Price (in dollars) |
---|---|---|---|
115 | 0 | 1 | $14,975 |
95 | 2 | 0 | $12,100 |
125 | 4 | 0 | $9,100 |
85 | 6 | 1 | $16,050 |
77 | 8 | 1 | $16,725 |
105 | 10 | 0 | $12,400 |
86 | 11 | 0 | $14,350 |
71 | 13 | 1 | $17,600 |
55 | 15 | 0 | $17,600 |
65 | 19 | 1 | $20,600 |
45 | 20 | 0 | $23,400 |
15 | 20 | 0 | $26,600 |
23 | 23 | 1 | $33,000 |
Determine the parameter estimates for the regression function represented by:
i=b0+b1X1i+b2X2i+b3X3i+b4X4i
where X4i=X2i2 What is the estimated regression function? (Enter your answer usingX1for X1i, X2for X2i, X3for X3i, andX4for X4i. Round your numerical values to two decimal places.)
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