Question

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. Click on the datafile logo to reference the data.

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). Enter negative value as negative number. 20385.25049
b. Is multicollinearity an issue for this model

Answer 1

a) estimated regression equation = ( 2.039e + 04 - 3.79e - 02 millage , - 6.863e + 02 age )

b) multicollinearity is an issue for this model

Explanation:

a) An estimated regression equation

estimated regression equation = price ~ mileage + age = ( 2.039e + 04 - 3.79e - 02 millage , - 6.863e + 02 age )

Residuals :

Min 1∅ median 3∅ max

- 1053.73 - 542.06 - 19.61 433.55 1560.81

coefficients :

• estimate std errors at t values
• ( intercept ) 2.039e + 04 2.982e+02 68.366<2e-16

b) multicollinearity is an issue for this model because the correlation between millage and Fs 0.6681727 is of high degree

attached below is the remaining part of the solution