# Statistics: Hypothesis Testing – #398

Question: The data in the table represent 10 Chevrolet Corsicas randomly selected from those sold by a national car rental agency. The selling prices y are in thousands of dollars, the mileages are in thousands of miles, the variable is coded so that 1 represents a car with cruise control and 0 represents a car without cruise control, and is the age of the car in months. The data below are from a textbook that is more than 10 years old. 35 22 32 18 25 36 33 17 26 21 0 1 0 1 0 1 1 0 1 0 22 19 19 21 18 20 19 18 15 24 7 8.5 7 8.9 7.6 7.4 7.3 8.6 7.9 8

(a) Identify the multiple regression equation that expresses the selling price in terms of mileage, cruise control, and age.

Paste your STATDISK picture here or on a separate page.

Show the equation.

(b) Use the multiple regression equation to predict the selling price of a car with 30,000 mi, no cruise control, and an age of 16 months.

(c) Use the multiple regression equation to predict the selling price of a car with 27,000 mi, cruise control, and an age of 20 months.

(d) Use STATDISK to find the best prediction equation for selling price (SP). Identify that equation. Explain how you found it.

[Hint: Try SP with each of the three variables as in linear regression. Try SP with each of three pairs of two variables. Look at all three variables on SP.) 