Question: A car dealership is constructing a model to predict secondhand car prices. The two factors that are hypothesised to affect the price most are the

A car dealership is constructing a model to predict secondhand car prices. The two factors that are hypothesised to affect the price most are the car’s mileage and its new car price.

a. Predict the second-hand sales price of a car with 450,000 km and a new car sales price of $35,000, and construct a 95% confidence interval estimate and a 95%
prediction interval.

b. Perform a residual analysis and determine the adequacy of the model.

c. Is there a significant relationship between second-hand sales price and the two independent variables at the 0.05 level of significance?

d. Construct 95% confidence interval estimates of the population slopes.

e. Calculate the adjusted R2 .

f. Calculate the coefficients of partial determination and interpret their meaning.

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