When trying to decide what car to buy, real value is not necessarily determined by how much you spend Instead, cars that are reliable and don't cost much to own often represent the best values. But, o matter how reliable or ine a car may cost to own, it must also perform well 5-yr owner cost Road-test Score CAR Nissan Altima 2.5 S (4-cyl.) Kia Optima LX (2.4) Subaru Legacy 2.5i Premium Ford Fusion Hybrid Honda Accord LX-P (4 cyl.) Mazda6 I Sport (4 cyl.) Hyundai Sonata GLS (2.4) Ford Fusion SE Chevrolet (4 cyl.) Malibu LT (4 cyl.) Kia Optima SX (2.0T) Ford Fusion SEL (V6) Nissan Altima 3.5 SR (V6) Hyundai Sonata Limited (2.0T) Honda Accord EX-L (V6) Mazda6 Grand Touring (V6) Ford Fusion SEL (V6 AWD) Subaru Legacy 3.6R Limited Chevrolet Malibu LTZ (V6) Chrysler 200 Limited (V6) Chevrolet Impala LT (3.6) Totals y-intercept Slope b1 Slope b2 Slope b3 Slope b4 PRICE Reliability ratings Value COST/ MILE ROAD TEST SCORE RELIABILITY VALUE 23,970 0.59 91 4 1.75 21,885 0.58 81 4 1.73 23,830 0.59 83 4 1.73 32,360 0.63 84 5 1.70 23,730 0.56 80 4 1.62 22,035 0.58 73 4 1.60 21,800 0.56 89 3 1.58 23,625 0.57 76 4 1.55 24,115 0.57 74 3 1.48 29,050 0.72 84 4 1.43 28,400 0.67 80 4 1.42 30,335 0.69 93 4 1.42 28,090 0.66 89 3 1.39 28,695 0.67 90 3 1.36 30,790 0.74 81 4 1.34 30,055 0.71 75 4 1.32 30,094 0.71 88 3 1.29 28,045 0.67 83 3 1.20 27,825 0.70 52 5 1.20 28,995 0.67 63 3 1.05 537,724 12.84 1609 1.269 0.000 -1.582 0.011 0.179 T value F distribu 75 29.16 y= Regression Equation = Best Value = Rejection Rule: Reject Ho if p-value or if F t .025 with d.f 15 = t -2.131 or t = .05 = .05 and d.f = 4 , 15 F.05 = 3.06 Answer: Reject Ho since F= 50.60 3.06 Reject three Ho: b1 = 0 Ho: b2 = 0 Ho: b 3 = 0 Ho: three independent variables are significant mined by how much you spend on the initial purchase. But, o matter how reliable or inexpenssive SUMMARY OUTPUT Regression Statistics Multiple R 0.964888 R Square 0.931009 Adjusted R Square 0.912611 Standard Error 0.058369 Observations 20 ANOVA df Regression SS MS 4 0.6896166898 0.172404 Residual 15 0.0511033102 0.003407 Total 19 F Significance F 50.6046 1.559928E-008 0.74072 Coefficients Standard Error t Stat P-value Lower 95% Upper 95%Lower 95.0% Intercept 1.269477 0.2333776485 5.439582 6.84E-005 0.7720442376 1.76691 0.772044 PRICE -1.4E-005 8.2235265E-006 -1.751746 0.100231 -3.19336E-005 3.12E-006 -3.2E-005 COST/ MILE -1.581537 0.4496596878 -3.517186 0.003112 -2.5399637567 -0.62311 -2.539964 ROAD TEST SCORE 0.011431 0.0014841028 7.70239 1.37E-006 0.008267848 0.014594 0.008268 RELIABILITY 0.179079 0.0227752358 7.862863 1.06E-006 0.1305342915 0.227623 0.130534 B0 + B1X1 + B2X2 + B3X3 + B4X4 Intercept + Price + Cost/Mile + Roast Test Score +Reliability 1.269 - 1.4E (PRICE) - 1.581 (COST/MILE) + 0.011 (SCORE) + 0.179 (RELIABILITY) or if F with d.f 15 = t -2.131 or t 2.131 025 nce F= 50.60 3.06 = 0 Ho: b2 = 0 Ho: b 3 = 0 Ho: b4 = 0 ariables are significant Confidence Interval Anwer: 0 is not included between -3.2E-005 3.12E-006 -2.539964 -0.62311 0.008268 0.014594 0.130534 0.227623 Upper 95.0% 1.76691 3.12E-006 -0.62311 0.014594 0.227623 s not included between