Beachcomer Ltd is a local car dealership that sells used and new vehicles. The manager of the company wants to know how different variables affect the sales of his vehicles. A random sample of yearly data was taken with the view to testing the model. SALES = *a+BAGE + yMIL + SENG*

Where SALES = amount that a vehicle is sold for (000’s), AGE = age of vehicle, MIL= the total mileage of the vehicle at the point of sale and ENG = the size of the engine. The sample of data was processed using MINITAB and the following is an extract of the output obtained:

The regression equation is *****

**Coef StDev t-ratio p-value**

**Predictor**

**Constant **1.7586 0.2525 6.9648 0.0000

**AGE **0.2124 0.3175 * 0.5042

**MIL **-0.7527 0.3586 -2.0991 **

**ENG ** 4.8124 0.6196 7.7664 0.0000

R-sq= 56.1 % R-sq (adj) = 59.8 %

Analysis of Variance

**Source DF SS MS F P**

**Regression 3 413.1291 138.7097 *** 0.00**

**Error 50 457.7607 2.2888**

**Total 53**

Beachcomer Ltd is a local car dealership that sells used and new vehicles. The manager of the company wants to know how different variables affect the sales of his vehicles. A random sample of yearly data was taken with the view to testing the model. SALES = *a+BAGE + yMIL + SENG*

Where SALES = amount that a vehicle is sold for (000’s), AGE = age of vehicle, MIL= the total mileage of the vehicle at the point of sale and ENG = the size of the engine. The sample of data was processed using MINITAB and the following is an extract of the output obtained:

The regression equation is *****

**Coef StDev t-ratio p-value**

**Predictor**

**Constant **1.7586 0.2525 6.9648 0.0000

**AGE **0.2124 0.3175 * 0.5042

**MIL **-0.7527 0.3586 -2.0991 **

**ENG ** 4.8124 0.6196 7.7664 0.0000

R-sq= 56.1 % R-sq (adj) = 59.8 %

Analysis of Variance

**Source DF SS MS F P**

**Regression 3 413.1291 138.7097 *** 0.00**

**Error 50 457.7607 2.2888**

**Total 53**

Hence test whether Delta is significant. Give reasons for your answer