The finance manager performed a regression analysis of the number of cars sold and interest rates using the sample of data above. Shown below is a portion of the regression output. Regression Statistics Multiple R 0.998868 R2 0.997738 Coefficient Intercept 14.88462 Interest Rate -1.61538 Are there factors other than the interest rate charged for cars sold that the finance manager should consider in predicting future car sales? Is interest rate charged for a loan the most important factor to be considered in predicting future car sales? Explain your reasoning. The dealership's vice-president of marketing has requested a sales forecast at the prevailing interest rate of 7%.
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88462 - 1.61538x, where y represents the number of cars sold and x represents the interest rate. The coefficient of determination (R^2) is 0.997738, indicating that 99.7% of the variation in car sales can be explained by the interest rate. Show more…
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