Beachcomer Ltd is a local car dealership that sells used and new vehicles. The manager of the company wants to know how different variables affect the sales of his vehicles. A random sample of yearly data was taken with the view to testing the model. SALES =a+BAGE + yMIL + SENG
Where SALES = amount that a vehicle is sold for (000's), AGE = age of vehicle, MIL= the total mileage of the vehicle at the point of sale and ENG = the size of the engine. The sample of data was processed using MINITAB and the following is an extract of the output obtained:
The regression equation is *****
Coef StDev t-ratio p-value
Predictor
Constant1.7586 0.2525 6.9648 0.0000
AGE0.2124 0.3175 * 0.5042
MIL-0.7527 0.3586 -2.0991 **
ENG
4.8124 0.6196 7.7664 0.0000
R-sq= 56.1 % R-sq (adj) = 59.8 %
Analysis of Variance
Source DF SS MS F P
Regression 3 413.1291 138.7097 *** 0.00
Error 50 457.7607 2.2888
Total 53
Beachcomer Ltd is a local car dealership that sells used and new vehicles. The manager of the company wants to know how different variables affect the sales of his vehicles. A random sample of yearly data was taken with the view to testing the model. SALES =a+BAGE + yMIL + SENG
Where SALES = amount that a vehicle is sold for (000's), AGE = age of vehicle, MIL= the total mileage of the vehicle at the point of sale and ENG = the size of the engine. The sample of data was processed using MINITAB and the following is an extract of the output obtained:
The regression equation is *****
Coef StDev t-ratio p-value
Predictor
Constant1.7586 0.2525 6.9648 0.0000
AGE0.2124 0.3175 * 0.5042
MIL-0.7527 0.3586 -2.0991 **
ENG
4.8124 0.6196 7.7664 0.0000
R-sq= 56.1 % R-sq (adj) = 59.8 %
Analysis of Variance
Source DF SS MS F P
Regression 3 413.1291 138.7097 *** 0.00
Error 50 457.7607 2.2888
Total 53
Hence test whether Delta is significant. Give reasons for your answer