1. Your company purchases automobiles at auction. Knowing how much to bid for a specific automobile is a skill which appears to be acquired with experience. Less experienced buyers make lots of mistakes.
You want to transfer the skill of your most experienced buyers to your least experienced buyers quickly and simply.
Your own experience of the business leads you to believe that the fair market value of an automobile (represented by the winning bid in a competitive auction) depends on:
a) the age of the automobile;
b) the sticker price of the automobile when new;
c) the miles shown on the odometer;
d) the condition of the automobile on a 5-point scale;
e) whether the transmission is automatic or manual.
Your objective is to build a regression model that accurately predicts the sale price of an automobile sold at auction. The Excel data file is Autos.
2. Using the results from the above assignment, prepare a professional document that presents the results of your analysis. Include graphs that demonstrate how each of the independent variables in your model affects auction price.
Estimating and Interpreting Coefficients
Estimating and Predicting the Dependent Variable
Multiple Regression Analysis and Hypothesis Testing. Estimation and prediction are also shown.