A dealer of matchbox cars believes that the price received for the cars at an au
ID: 3174520 • Letter: A
Question
A dealer of matchbox cars believes that the price received for the cars at an auction increases with the age (X1) of the cars and with the number of people bidding (X2) on the car. Data was collected at a big national show and auction in Chicago Illinois:
Answer the following only using SAS:
1.) Test if X2 is significant to the model. start with Ho and Ha then show your test statisitic, decision, and finally write a conclusion.
2.) Find the 95% confidence interval for E(Y) when the age is 11 years and the # of bidders is 15
3.) find the 95% prediction interval for Y when the age is 11 years and the # of bidders is 15
Model: Linear Regression Model Number of Observations Read 31 Number of Observations Used 31 Analysis of Variance DF Sum of Mean F Value Pr F Source Squares Square 29876 49.80Explanation / Answer
1.
H0:bidders is not a significant.
H1:bidders is a significant
In given output t test statistic=1.91 fo X2
P value for bidder is 6% which is not significant at 10% level.Hence #bidders is not a significant value
95% CI
b1= [1.36863,2.07569]
b2=[-0.22927,6.50957]
2.95% CI for E[Y]= [73.28023,116.255]
3.95% CI for Y=[40.18675,149.3485]