Question: Regression analysis: in a hypothetical example, a professor is considering the purchase of a 1964 Beechcraft debonair with a tach time (TT) of 6100 hours

Regression analysis: in a hypothetical example, a professor is considering the purchase of a 1964 Beechcraft debonair with a tach time (TT) of 6100 hours and 1000 hrs since its last major overhaul (SMOH). He takes a look at the most recent issue of Trade-A-Plane and finds 12 Debonair planes listed with the year and Tach time in hours and runs a regression of price on year and tach time and hours SMOH. (The output is above).

A.) What is the estimated multiple regression equation?

B.) What is the R^2 for this regression? Interpret it.

C.) Are independent variables significant?

D. ) What would be a reasonable price to pay for the pane he is looking at?

E.) What caveats would you warn him about?

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