Consider the following set of inventory data in thousands of dollars(000) for the 4 quarters in year
Question: You have been hired by Car and Driver Magazine as a statistician and your job is to build a multiple regression model to predict the selling price of a new car based on the file Automobile on the CD-ROM. You can use all the variables except Company. You must use at least one of the 2 categorical variables, Car Type and ABS. (Hint: You will need to add dummy variables to your data file. Please make sure you create them correctly. ) Your model will be judged in terms of Adjusted R-Squared, F-Test, Individual variables significant, Standard Error, Autocorrelation and Multicollinearity. A summary sheet showing all your tests will be needed to prove that your model is good (You need to explain each of these). When you complete your model, produce a plot (and spreadsheet ) showing the actual price vs predicted price (based on your model) for each car in the data set along with the residuals (Actual price – Predicted price). (11 points)
Type of Deliverable: Word Document
