Question: 3)Kelly Blue Book would like to develop a model to price used cars (in 5) based on age {number ol'years, mileage (miles) and its condition.

 3)Kelly Blue Book would like to develop a model to price

3)Kelly Blue Book would like to develop a model to price used cars (in 5) based on age {number ol'years, mileage (miles) and its condition. Condition can take on the value of Excellent, Good, and Poor. Below is the output from a multiple regression analysis, correlation matrix and multicollinearity test. a.Il' two variables with a correlation coefcient more than 35% are considered to be highly correlated, which variable(s} should be excluded from the model\".J b.Fill in the blanks for the final regression model. c. Interpret each of the coefficients. d.Predict the price of a 4-year-old car with 47,270 miles in good condition Mileage Age Mileage 1 Age 0146773542 1 SUMMARY OUTPUT Mileage on Age Regression Statistics Multiple R 0.14? RSquare 0.022 Adjusted R Square -0.033 Standard Error 20471.345 Observations 20.000 SUMMARY OUTPUT Regression Statistics Multiple R 0.852 R Square Adjusted R Square Standard Error 2813.113 Observations 20.000 ANOVA d 55 MS F A A 'F Regression 4 86020545295 0.000 Residual 15 118704091515 Total 19 452785576800 Coefficients Standard Error tStat Intercept 29903.377 2445.851 0.000 Mileage -0.099 0.035 0.013 Age -752.210 345.542 0.044 Excellent -7595.599 2334.703 0.005 Good 5537.559 2022.239 0.014

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