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Assignment 6 Age of car ears 1.00 1.00 2.00 2.00 3.00 3.00 4.00 5.00 6.00 10.00

ID: 3053291 • Letter: A

Question

Assignment 6 Age of car ears 1.00 1.00 2.00 2.00 3.00 3.00 4.00 5.00 6.00 10.00 Mileage 40.00 25.00 37.00 35.00 36.00 35.00 32.00 30.00 25.00 20.00 -3.7, s,-2.75; ?-31.5, s,-6.38; cov,--12.83 1. Given the previous values, calculate the regression equation and draw the regression line. 2. What does the value for b (the slope) tell us about the relationship between X and Y? 3. What is the difference between the predicted and observed value for Mileage when a car is 4 years old? 4. Calculate and interpret B. Is the effect significant? Why or why not? 5. Calculate and interpret r2.

Explanation / Answer

Using R

> Age_of_Car=c(1,1,2,2,3,3,4,5,6,10)
> Mileage=c(40,25,37,35,36,35,32,30,25,20)
> model=lm(Mileage~Age_of_Car)
> model

Call:
lm(formula = Mileage ~ Age_of_Car)

Coefficients:
(Intercept) Age_of_Car  
37.775 -1.696  

Mileage =37.775 - 1.696 *Age of Car

is a regression model

2) If Age of car is increases one year then mileage of car is decreases 1.696 unit .

3)

> newdata=data.frame(Age_of_Car=4)
> predict(model,newdata = newdata)
1
30.99119

Actual value = 32

Predicted Value = 30.9911

difference =Actual value - Predicted value

= 32 - 30.9911

=  1.0089

5) R-square

> R_Square=summary(model)$r.squared
> R_Square
[1] 0.5344941