9.

8_Data

Mileage Year T-Top Price

115 1968 1 13875
95 1970 0 11000
125 1972 0 8000
85 1974 1 14950
77 1976 1 15625
105 1978 0 11300
88 1979 0 13250
73 1981 1 16500
55 1983 0 16500
65 1987 1 19500
45 1988 0 22300
15 1988 0 25500
23 1991 1 31900

Page 1
Mileage(X1) Year(X2) T-Top(X3) Price(Y)
115 1968 1 13875
95 1970 0 11000
125 1972 0 8000 Y vs X1
85 1974 1 14950
77 1976 1 15625 35000
105 1978 0 11300 30000
88 1979 0 13250
25000 f(x) = - 179.1697340572x + 30252.1510076
73 1981 1 16500 R² = 0.8444172133

Selling Price(Y)
55 1983 0 16500 20000
65 1987 1 19500
15000
45 1988 0 22300
15 1988 0 25500 10000
23 1991 1 31900
5000

0
0 20 40 60 80 10

For a Simple linear equation, Roger sohuld X1 - Mileage(X1)

Mileage as it is has a good regression fit with
Selling price Y.

Value odf R square - 84.4 ( highest amongst

X1,X2,3 individual linear models) - P value <0.05 -
statistically significant
Y vs X2
35000

30000

25000
f(x) = 733.0639614856x - 1434246.23452548
Selling Price (Y)

R² = 0.7092470298
20000

15000

10000

5000

0
1965 1970 1975 1980 1985

Year(X2)

Y vs X3
35000

30000

25000
Seeling Price (Y)

20000
f(x) = 3317.8571428571x + 15407.1428571429
15000 R² = 0.0699459842
10000

5000
 35000

30000

25000

Seeling Price (Y)

20000
f(x) = 3317.8571428571x + 15407.1428571429
15000 R² = 0.0699459842
10000

5000

0
0 0.2 0.4 0.6 0.8
T-Top(X3)
 SUMMARY OUTPUT

Regression Statistics
Y vs X1 Multiple R 0.918922
R Square 0.844417
Adjusted R 0.830273
Standard E2681.722
Observatio 13
179.1697340572x + 30252.1510076378
444172133
ANOVA
df SS MS F Significance F
Regressio 1 4.29E+08 4.29E+08 59.70191 9.08E-06
Residual 11 79107938 7191631
Total 12 5.08E+08

Coefficients
Standard Error t Stat P-value Lower 95%
40 60 80 100 120 140
Intercept 30252.15 1876.75 16.11943 5.33E-09 26121.45
Mileage(X1) Mileage(X1 -179.17 23.18839 -7.7267 9.08E-06 -230.207

SUMMARY OUTPUT
Y vs X2
Regression Statistics
Multiple R 0.842168
R Square 0.709247
Adjusted R 0.682815
4856x - 1434246.23452548 Standard E3666.021
8 Observatio 13

ANOVA
df SS MS F Significance F
Regressio 1 3.61E+08 3.61E+08 26.8328 0.000304
Residual 11 1.48E+08 13439713
Total 12 5.08E+08

Coefficients
Standard Error t Stat P-value Lower 95%
75 1980 1985 1990 1995 Intercept -1434246 280151.2 -5.11954 0.000334 -2050855
Year(X2) Year(X2) 733.064 141.5171 5.180039 0.000304 421.587

SUMMARY OUTPUT

Y vs X3 Regression Statistics
Multiple R 0.264473
R Square 0.069946
Adjusted R -0.0146
Standard E6556.726
Observatio 13

1x + 15407.1428571429
1x + 15407.1428571429 ANOVA
df SS MS F Significance F
Regressio 1 35564876 35564876 0.82727 0.38256
Residual 11 4.73E+08 42990649
Total 12 5.08E+08
0.4 0.6 0.8 1 1.2
Coefficients
Standard Error t Stat P-value Lower 95%
T-Top(X3)
Intercept 15407.14 2478.209 6.217047 6.56E-05 9952.641
T-Top(X3) 3317.857 3647.825 0.909544 0.38256 -4710.95
Significance F

Upper 95%
Lower 95.0%
Upper 95.0%
34382.85 26121.45 34382.85
-128.132 -230.207 -128.132

Significance F

Upper 95%
Lower 95.0%
Upper 95.0%
-817638 -2050855 -817638
1044.541 421.587 1044.541
Significance F

Upper 95%
Lower 95.0%
Upper 95.0%
20861.64 9952.641 20861.64
11346.67 -4710.95 11346.67
Mileage(X1)Year(X2) T-Top(X3) Price(Y) SUMMARY OUTPUT
115 1968 1 13875
95 1970 0 11000 Regression Statistics
125 1972 0 8000 Multiple R 0.921133
85 1974 1 14950 R Square 0.848487
77 1976 1 15625 Adjusted R 0.818184
105 1978 0 11300 Standard E2775.587
88 1979 0 13250 Observatio 13
73 1981 1 16500
55 1983 0 16500 ANOVA
65 1987 1 19500 df SS MS F
45 1988 0 22300 Regressio 2 4.31E+08 2.16E+08 28.00037
15 1988 0 25500 Residual 10 77038846 7703885
23 1991 1 31900 Total 12 5.08E+08

Coefficients
Standard Error t Stat P-value
Parameter estimates: Intercept -206653 457133.9 -0.45206 0.660871
b0 = -206653 Mileage(X1 -155.647 51.34351 -3.03149 0.012645
b1 = -155.647 Year(X2) 118.7894 229.2148 0.518245 0.615559
b2 = 118.785

Y = --206653 155.647X1+118.785 X2

X2 does not do a good job in

determing the selling price with X1 as
p value of X2(0.6155) is lesser than
0.05 - hence, statistically insignificant
Significance F
7.98E-05

Lower 95%Upper 95%Lower 95.0%

Upper 95.0%
-1225211 811904.8 -1225211 811904.8
-270.048 -41.2467 -270.048 -41.2467
-391.933 629.5117 -391.933 629.5117
Mileage(X1)T-Top(X3) Price(Y) SUMMARY OUTPUT
115 1 13875
95 0 11000 Regression Statistics
125 0 8000 Multiple R 0.947257
85 1 14950 R Square 0.897295
77 1 15625 Adjusted R 0.876754
105 0 11300 Standard E2285.202
88 0 13250 Observatio 13
73 1 16500
55 0 16500 ANOVA
65 1 19500 df SS MS F
45 0 22300 Regressio 2 4.56E+08 2.28E+08 43.68321
15 0 25500 Residual 10 52221501 5222150
23 1 31900 Total 12 5.08E+08

Coefficients
Standard Error t Stat P-value
Parameter estimates: Intercept 28793.92 1723.552 16.70615 1.24E-08
b0 = -28793.92 Mileage(X1 -177.476 19.77384 -8.9753 4.24E-06
b1 = -177.476
b2 = 2886.84 T-Top(X3) 2886.844 1272.276 2.269039 0.046647

Y = --28793.92-177.47X11+2886.84 X3

X2 does not do a good job in

determing the selling price with X1 as
p value of X1 & X3 is greater than 0.05
- hence, statistically significant
Significance F
1.14E-05

Lower 95%Upper 95%

Lower 95.0%
Upper 95.0%
24953.61 32634.23 24953.61 32634.23
-221.535 -133.417 -221.535 -133.417
52.03618 5721.651 52.03618 5721.651
 Y vs X1

With only X1, the value of R2 in regression is 84.4% (p value <0.05 - statistically significant )

With X1&X3, the value of adj R2 in regression is 87.6 % ( p value of X1, X3 <0.05 - statistically
Also, value of X2 can be 2886.844 and 0 ( as values of T top are only 1 and 0)- hence, the con
accordingly

Hence, the T-top does good job in adding to the regression fit by min 3%
 Y vs X1,X3

<0.05 - statistically significant )

lue of X1, X3 <0.05 - statistically significant)

re only 1 and 0)- hence, the contribution

fit by min 3%
Mileage(X1)Year(X2) T-Top(X3) Price(Y) SUMMARY OUTPUT
115 1968 1 13875
95 1970 0 11000 Regression Statistics
125 1972 0 8000 Multiple R 0.951336
85 1974 1 14950 R Square 0.905041
77 1976 1 15625 Adjusted R Sq 0.873387
105 1978 0 11300 Standard Erro 2316.206
88 1979 0 13250 Observations 13
73 1981 1 16500
55 1983 0 16500 ANOVA
65 1987 1 19500 df SS MS F
45 1988 0 22300 Regression 3 4.6E+08 1.53E+08 28.59243
15 1988 0 25500 Residual 9 48283282 5364809
23 1991 1 31900 Total 12 5.08E+08

Coefficients
Standard Error t Stat P-value
Parameter estimates: Intercept -299860 383593.2 -0.78171 0.454455
b0 = -299860 Mileage(X1) -144.782 43.102 -3.35906 0.008402
b1 = -144.782
b2 = 164.7653 Year(X2) 164.7653 192.306 0.856787 0.413793
b3 = 3001.55 T-Top(X3) 3001.55 1296.468 2.315175 0.045847

Y = -299860 144.782X1+164.765X2+3001.55X3
Significance F
6.22E-05

Lower 95%Upper 95%Lower 95.0%

Upper 95.0%
-1167608 567887.8 -1167608 567887.8
-242.286 -47.2787 -242.286 -47.2787
-270.261 599.7917 -270.261 599.7917
68.73581 5934.364 68.73581 5934.364
Based on the regression models, it seems that Y = -179.17 + 30252 seems to be a good model
with R sq of 84.4%.

However, if provision of maintatining X3(T- top) is easier,

Y = --28793.92-177.47X11+2886.84 X3 with R square of 87% seems to be a better model
 be a good model

better model