A Local Car Dealer Is Trying To Determine If There Is A Relationship

A local car dealer is trying to determine if there is a relationship between car sales and interest rates. For the past two years, the owner of the dealership has tracked monthly car sales and the average interest rates for each month. The data is given below: MonthTotal Car Sales (units) YAverage Interest Rate (%) X11576. 1521696. 0031885. 9542445. 7552565. 7562895. 6072555. 6082845. 5092505. 50102335. 40112155. 40122315. 35131895. 35142015. 25152265. 15162445. 00172904. 50182974. 50193114. 25203274. 00213354. 00222775. 00232555. 25242415. 35Conduct a regression analysis using Excel and a . 05 level of significance. 1. What is the standard error of the regression model?2. What is the coefficient of correlation?3. What is the coefficient of determination?4. Is there a statistically significant relationship between car sales and interest rates? Hint: Is the p value significant?5. What is your decision for steps 4 and 5?

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A local car dealer is trying to determine if there is a relationship

Question
A local car dealer is trying to determine if there is a relationship between car sales and interest rates. For the past two years, the owner of the dealership has tracked monthly car sales and the average interest rates for each month. The data is given below:

Month

Total Car Sales (units) Y

Average Interest Rate (%) X

1

157

6.15

2

169

6.00

3

188

5.95

4

244

5.75

5

256

5.75

6

289

5.60

7

255

5.60

8

284

5.50

9

250

5.50

10

233

5.40

11

215

5.40

12

231

5.35

13

189

5.35

14

201

5.25

15

226

5.15

16

244

5.00

17

290

4.50

18

297

4.50

19

311

4.25

20

327

4.00

21

335

4.00

22

277

5.00

23

255

5.25

24

241

5.35

Conduct a regression analysis using Excel and a .05 level of significance.

1. What is the standard error of the regression model?

2. What is the coefficient of correlation?

3. What is the coefficient of determination?

4. Is there a statistically significant relationship between car sales and interest rates? Hint: Is the p value significant?

5. What is your decision for steps 4 and 5?

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