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First, add a variable to change the type of bus (diesel or gasoline) to a qualitative variable. If the bus type is diesel, then set the qualitative variable to 0. If the bus type is gasoline, then set the qualitative variable to 1. Develop a regression equation using statistical software with maintenance as the dependent variable and age, miles, and bus type as the independent variables. a. Write out the multiple regression equation analysis. Discuss each of the variables. b. Determine the value of R2. Interpret. c. Develop a correlation matrix. Which independent variables have strong or weak correlations with the dependent variable? Do you see any problems with multicollinearity? d. Conduct the global test on the set of independent variables. Interpret. e. Conduct a test of hypothesis on each of the independent variables. Would you consider deleting any of the variables? If so, which ones? f. Rerun the analysis until only significant regression coefficients remain in the analysis. Identify these variables. g. Develop a histogram or a stem-and-leaf display of the residuals from the final regression equation developed in part (f). Is it reasonable to conclude that the normality assumption has been met? h. Plot the residuals against the fitted values from the final regression equation developed in part (f) against the fitted values of Y. Plot the residuals on the vertical axis and the fit-ted values on the horizontal axis.

Age

Miles

Type

X3

X4

X5

7

853

Diesel

10

883

Diesel

10

822

Diesel

10

865

Gasoline

7

751

Gasoline

8

870

Diesel

5

780

Gasoline

9

857

Gasoline

3

818

Gasoline

8

869

Gasoline

9

848

Diesel

10

845

Gasoline

10

885

Gasoline

12

838

Diesel

8

760

Diesel

3

741

Diesel

10

859

Gasoline

8

826

Gasoline

3

806

Gasoline

9

858

Diesel

2

785

Gasoline

7

828

Diesel

11

980

Gasoline

8

857

Diesel

9

803

Diesel

6

819

Diesel

6

821

Diesel

3

798

Gasoline

9

815

Diesel

2

757

Diesel

10

1008

Diesel

9

831

Diesel

6

849

Diesel

8

839

Diesel

8

812

Diesel

9

809

Diesel

4

864

Gasoline

11

859

Diesel

2

815

Diesel

6

799

Diesel

9

844

Diesel

9

832

Gasoline

5

842

Gasoline

2

792

Diesel

9

775

Gasoline

9

882

Diesel

7

874

Diesel

6

837

Gasoline

5

774

Diesel

1

823

Diesel

8

790

Diesel

4

800

Diesel

7

827

Gasoline

6

830

Diesel

14

895

Diesel

6

804

Gasoline

8

866

Gasoline

9

842

Diesel

8

851

Diesel

10

835

Diesel

7

866

Diesel

4

846

Gasoline

2

802

Diesel

11

847

Diesel

6

856

Diesel

5

799

Diesel

4

827

Diesel

7

817

Diesel

7

842

Diesel

7

815

Diesel

6

784

Gasoline

4

817

Diesel

6

816

Diesel

9

816

Gasoline

10

827

Diesel

4

806

Diesel

6

819

Gasoline

10

836

Diesel

4

757

Diesel

4

817

Gasoline

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