The data below contains mileage, age, and selling price for a sample of 33 sedans. Price Mileage Age Price Mileage Age Price Mileage Age 16,998 35,000 3 11,599 95,000 8 18,998 20,000 2 17,599 16,000 3 11,499 123,000 8 12,599 63,000 7 15,998 42,000 3 14,599 54,000 5 12,599 70,000 6 15,998 62,000 4 10,599 68,000 10 10,998 88,000 10 11,599 102,000 7 16,998 40,000 4 11,998 86,000 6 12,998 109,000 4 20,998 7,000 0 13,998 60,000 6 14,998 60,000 5 11,599 82,000 9 17,599 45,000 2 11,599 88,000 9 12,599 70,000 6 9,998 97,000 11 12,599 58,000 8 13,599 86,000 5 9,998 60,000 11 14,998 27,000 6 11,599 92,000 7 16,998 36,000 2 15,998 32,000 5 9,599 120,000 10 17,599 45,000 2(a) Develop an estimated regression equation that predicts the selling price of a used Honda Accord given the mileage and age of the car. (Round your numerical values to two decimal places. Let x] represent mileage, X2 represe and y represent the selling price.) y = (b) Is multicollinearity an issue for this model? Find the correlation between the independent variables to answer this question.(Round your answer to two decimal places.) The correlation between age and mileage is . Since this is ? v 0.70, we conclude that multicollinearity ---Select--- v | an issue. (c) Use the F test to determine the overall significance of the relationship. State the null and alternative hypotheses. O H: One or more of the parameters is not equal to zero. Ha: B1 = B2 = 0 O Ho: Bo = 0 Ha: Po = 0 OH : B 1 = B2 = 0 He: All the parameters are not equal to zero. O Ho: B1 = $2 = 0 Ha: One or more of the parameters is not equal to zero. OH : Bo = 0 Ha: Bo # 0 Calculate the test statistic. (Round your answer to two decimal places.) Calculate the p-value. (Round your answer to four decimal places.) p-value = I Enter an exact number. What is your conclusion at the 0.05 level of significance? O Reject Ho. There is sufficient evidence to conclude that there is a significant relationship. O Reject Ho. There is insufficient evidence to conclude that there is a significant relationship. O Do not reject Ho. There is sufficient evidence to conclude that there is a significant relationship.(d) Use the t test to determine the significance of the independent variable mileage. State the null and alternative hypotheses. OH: B, 20 HA: B1 0 OH: B1 0 H : B, =0 OH : B, = 0 H_ : B, >0 Find the value of the test statistic for , . (Round your answer to two decimal places.) Find the p-value for B. (Round your answer to four decimal places.) p-value = What is your conclusion at the 0.05 level of significance? O Reject Ho. There is sufficient evidence to conclude that mileage is a significant factor. O Reject Ho. There is insufficient evidence to conclude that mileage is a significant factor. O Do not reject Ho. There is sufficient evidence to conclude that mileage is a significant factor. O Do not reject H . There is insufficient evidence to conclude that mileage is a significant factor.Use the t test to determine the significance of the independent variable age. State the null and alternative hypotheses. OH: B, = 0 H: B, >0 OH: B , = 0 HA: B2 = 0 O Ho: B2 = 0 H : B , $ 0 OH: B, SO H: B , >0 O Ho: B2 20 Ha: P2
