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An automobile rental company wants to predict the yearlymaintenance expense (Y) for an automobile using the number of milesdriven during the year ( X1 ) and the age of the car ( X2 , inyears) at the beginning of the year. The company has gathered thedata on 10 automobiles and the regression information from Excel ispresented below. Use this information to answer the followingquestions.
Summary measures Multiple R 0.9689 R-Square 0.9387 Adj R-Squared0.9212 StErr of Estimate 72.218
| Regression Coefficient | | | |
| | | | |
| Coefficient | std err | t-value | p-value |
| constant | 33.796 | 48.181 | 0.7014 | 0.5057 |
| Miles Driven | 0.0549 | 0.0191 | 2.8666 | 0.0241 |
| Age of Car | 21.467 | 20.573 | 1.0434 | 0.3314 |
a. Use the information above to write out the estimated linearregression model.
b. Interpret each of the estimated coefficients of theregression model in part (a).
c. Identify and interpret the coefficient of determination ( R2) and the adjusted R2 .
d. Does the given set of explanatory variables do a good job ofexplaining changes in the maintenance costs? Explain why or whynot.
