1) (35pt) The CEO of a well-known car reseller company wants to determine the fa
ID: 2947211 • Letter: 1
Question
1) (35pt) The CEO of a well-known car reseller company wants to determine the factors driving the resale value of a vehicle. The CEO knows that the resale value is an important factor considered by customers when buying a car. Assume you are performing a regression analysis using the data provided in the table below showing resale value, suggested price and type of vehicle (sport utility, small pickup) Suggested Resale Price (S) Value Type of Vehicle Vehicle Chevrolet Blazer LS Ford Explorer Sport GMC Yukon XL 1500 Honda CR-V Isuzu VehiCross Jeep Cherokee Limited Mercury Mountaineer Nissan Pathfinder XE Toyota 4Runner Toyota RAV4 Cvevrolet S-10 Extended Cab Dodge Dakota Club Cab Sport Ford Ranger XLT RegularCab 19,495 20,495 26,789 18,965 30,186 25,745 29,895 26,919 22,418 17,148 18,847 16,870 18,510 20,225 16,938 16,820 23,050 12,110 18,228 19,318 15,000 Sport Utility Sport Utility Sport Utlity Sport Utility Sport Utility Sport Utlity Sport Uslity Sport Utility Sport Utility Sport Uslity Small Pickup Small Pickup Small Pickup 10000 0000 Ford Ranger XLT Supercab Small Pickup 15000 20000 Suggested Retail Price (S) GMC Sonoma Regular CabSmall Pickup Isuzu Hombre Spacecab Small Pickup Small Pickup Small Pickup Small Pickup Small Pickup a. (2pt) How would you include "Type of Mazda B4000 SE Cab Plus vehicle" in the regression analysis? Nissan Frontier XE Regular Toyota Tacoma Xtracab Toyota Tacoma Xtracabv6 Tovota Tacoma XtracabV8 49 Small Picku b. (2pt) Comment on the scatter plot for resale value and suggested priceExplanation / Answer
(a) Type of vehicel would be used as independent variable in the regressionn analysis
(b) scatter plot shows, there is no pattern between relale value and suggested price,
so correlation between these two variables is not significant
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