Question: Using the data of Problem 15.6 on page 529, stored in HondaPrices, perform a natural logarithm transformation of the dependent variable (price). Using the transformed

Using the data of Problem 15.6 on page 529, stored in HondaPrices, perform a natural logarithm transformation of the dependent variable (price). Using the transformed dependent variable and the age as the independent variable, perform a regression analysis.

(a). State the regression equation.

(b). Predict the mean price for a five year old Honda Civic LX.

(c). Perform a residual analysis of the results and determine whether the regression assumptions are valid.

(d). At the 0.05 level of significance, is there a significant relationship between the natural logarithm of price and age?

(e). Interpret the meaning of the coefficient of determination, r2, in this problem.

(f). Compute the adjusted r2.

(g). Compare your results with those in Problem 15.6. Which model is better? Why?

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