Regression Analysis - Value Score :Cost/Mile

2.00
1.80
1.60
1.40
Value Score

1.20
1.00
0.80
0.60
0.40
0.20
0.00
0.55 0.60 0.65 0.70 0.75
Cost/Mile

Value Score Linear (Value Score) Linear (Value Score)

y = 2.9422 -2.3119x
R² = 0.5132

Summary Analysis:

There is a negative linear relationship between Value Score and Cost/Mile .As the Cost/Mile
increases for Unit value of X the Value Score of a car reduces by -2.3119 Units
 4. Regression Analysis to Predict the Value Score Based on Road test
Score

Value Score: Based on Road test Score

2.00

1.80 Regression Equa-

tion
1.60
f(x) = 0.00820633940792829 x + 0.79779999463217
1.40 R² = 0.169373740237077

1.20
Value Score

1.00 Value Score

Linear (Value Score)
0.80

0.60

0.40

0.20

0.00
40 50 60 70 80 90 100

Road Test Score

Based on the scatter plot we are able to get the regression equation as y = 0.0082x + 0.7978. Top
check the significance of the Equation and if the Road test score can be used to predict the Value
score the first thing we must look into is the F test using the ANOVA table below.

ANOVA
  df SS MS F Significance F
Regression 1 0.125458517 0.125458517 3.670396028 0.071409382
Residual 18 0.615261483 0.034181194
Total 19 0.74072      

Based on the ANOVA and the F-test We can see that the P value is greater than 0.05. Based on this
we can say that the Null hypothesis Ho = B1 = 0 holds true.

As the Null hypothesis holds true we cannot continue further with the regression test as the
independent variable(Road test score) does not have any effect on the dependent variable(Value
score).