The Honda Accord was named the best midsized car for resale value for by the Kelley Blue Book (Kelley Blue Book website). The file AutoResale contains mileage, age, and selling price for a sample of Honda Accords. Price Mileage Age
16998 35000 3
17599 16000 3
15998 42000 3
15998 61000 4
11599 102000 7
13998 109000 4
14998 60000 5
11599 88000 9
12599 58000 8
14998 27000 6
15998 32000 4
11599 95000 8
10499 123000 8
14599 54000 5
10599 68000 11
16998 40000 4
20998 7000 1
11599 81000 9
12599 70000 6
13599 86000 5
11599 92000 7
9599 120000 10
18998 20000 2
12599 63000 7
12599 70000 6
10998 88000 10
11998 86000 6
12998 60000 6
17599 45000 2
9998 96000 11
9998 60000 11
16998 36000 2
17599 45000 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 (to decimals).
B. Is multi-collinearity an issue for this model?
C. Use the F test to determine the overall significance of the relationship. What is your conclusion at the .05 level of significance?
D. Use the t test to determine the significance of each independent variable. What is your conclusion at the .05 level of significance?