Using the data of Problem 15.6 on page 529, stored in HondaPrices , perform a square-root transformation
Question:
Using the data of Problem 15.6 on page 529, stored in HondaPrices , perform a square-root transformation of the dependent variable (price). Using the square root of price as the dependent variable, perform a regression analysis.
a. State the regression equation.
b. Predict the mean price for a five-year-old Honda Civic LX.
c. Perform a residual analysis of the results and determine whether the regression model is valid.
d. At the 0.05 level of significance, is there a significant relationship between the square root of price and age?
e. Interpret the meaning of the coefficient of determination, r2, in this problem.
f. Compute the adjusted r2.
g. Compare your results with those of Problems 15.6 and 15.12. Which model is best? Why?
Step by Step Answer:
Statistics For Managers Using Microsoft Excel
ISBN: 9780134173054
8th Edition
Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat