THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The manager of a used-car dealership is very interested in the resale price of used cars.The manager feels that the age of the car is important in determining the resale value.He collects data on the age and resale value of 15 cars and runs a regression analysis with the value of the car (in thousands of dollars)as the dependent variable and the age of the car (in years)as the independent variable.Unfortunately,the printout had lost some of the results,identified by"A" through"F".The partial results left are displayed below.
-Compute the value of "D."
A)9.35
B)3.06
C)9.82
D)22.96

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The manager of a used-car dealership is very interested in the resale price of used cars.The manager feels that the age of the car is important in determining the resale value.He collects data on the age and resale value of 15 cars and runs a regression analysis with the value of the car (in thousands of dollars)as the dependent variable and the age of the car (in years)as the independent variable.Unfortunately,the printout had lost some of the results,identified by"A" through"F".The partial results left are displayed below. 
-Compute the value of "D."
A)9.35 
B)3.06 
C)9.82 
D)22.96

Quizplus · Accepted Answer

The value of the slope coefficient (β1) is -2.25 and the standard error of the estimate (s) is 3.06. Therefore, D can be calculated as D = 2.306 × 3.06 = 7.05. However, we need to multiply this value by the appropriate t-value from the t-distribution table with n-2 degrees of freedom for a 95% confidence level. Using the table, we find that the t-value is 2.306. Therefore, the value of D is D = 7.05 × 2.306 = 16.25. But since the question asks for the closest value, the best choice is D)22.96.