A Large Auto Dealership Is Interested in Determining the Number

question 74

Essay

A large auto dealership is interested in determining the number of cars that will be sold in a given quarter. The management of the dealership believes that a relationship can be found between the number of cars sold (Y), the advertised price ( ) and the current interest rates ( ). Their past experience shows that they tend to have better luck using a non-linear relationship. Below is the output from a regression analysis using the natural logarithm of the variables in the model.
-(A) Use the information above to estimate the regression model.
(B) Interpret each of the estimated regression coefficients of the regression model in (A).
(C) Does using a non-linear model seem to be a good choice in this example? Explain your answer.

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Definitions:

Complex

Composed of many interconnected parts, exhibiting varied and intricate relationships or arrangements.

Written Message

Communication conveyed through written symbols, either printed or digital, as opposed to spoken words.

Persuasive

Intended to convince or influence someone to adopt a certain viewpoint or to take a specific action.

Informative

Designed to provide useful information and increase knowledge on a particular subject.