SIMPLE MULTIPLE REGRESSION ( SCALE VARIABLES)

Excluded Variablesa
Collinearity Statistics
Partial Minimum
Model Beta In t Sig. Correlation Tolerance VIF Tolerance
b
1 Ground clearance (mm) .291 5.344 .000 .352 .344 2.905 .344
b
TV .162 3.958 .000 .268 .647 1.546 .647
Torque .b . . . .000 . .000
Mileage -.200b -4.653 .000 -.311 .573 1.746 .573
c
2 TV .188 4.968 .000 .331 .639 1.566 .269
c
Torque . . . . .000 . .000
Mileage -.098c -1.845 .066 -.129 .358 2.796 .215
3 Torque .d . . . .000 . .000
d
Mileage .011 .194 .846 .014 .293 3.415 .187
a. Dependent Variable: price
b. Predictors in the Model: (Constant), HP
c. Predictors in the Model: (Constant), HP, Ground clearance (mm)
d. Predictors in the Model: (Constant), HP, Ground clearance (mm), TV

The above mentioned are the excluded variables ad they have their sig level >0.05 which means there is no significance of these
variables on the regression line.

Model Summaryd
Adjusted R Std. Error of the Change Statistics
Model R R Square Square Estimate R Square Change F Change df1 df2 Sig. F Change
1 .874a .764 .763 3889.453713 .764 657.640 1 203 .000
b
2 .891 .793 .791 3649.649675 .029 28.553 1 202 .000
c
3 .903 .816 .813 3452.856530 .023 24.682 1 201 .000
a. Predictors: (Constant), HP
b. Predictors: (Constant), HP, Ground clearance (mm)
c. Predictors: (Constant), HP, Ground clearance (mm), TV
d. Dependent Variable: price

Here, we see that the Model 3 is the best model as the R square is the highest in model 3.
R – There is very high correlation of .903 between the variables.

R square – The regression model says that the variables explain 81.6% of the variation prices of the car.

Std. Error –3452.856530 is the estimate of deviation of the actual dependent variable (price) around the regression line.

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 9948685773.855 1 9948685773.855 657.640 .000b
Residual 3070953588.138 203 15127850.188
Total 13019639361.99 204
3
2 Regression 10329010925.89 2 5164505462.946 387.727 .000c
2
Residual 2690628436.101 202 13319942.753
Total 13019639361.99 204
3
3 Regression 10623273500.42 3 3541091166.810 297.016 .000d
9
Residual 2396365861.565 201 11922218.217
Total 13019639361.99 204
3
a. Dependent Variable: price
b. Predictors: (Constant), HP
c. Predictors: (Constant), HP, Ground clearance (mm)
d. Predictors: (Constant), HP, Ground clearance (mm), TV
Ho: The model is not a good fit

Ha: The model is a good fit.

Here the significance level<0.05, hence we reject the null hypothesis and conclude that the model is a good fit.
 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients Collinearity Statistics
Model B Std. Error Beta t Sig. Tolerance VIF
1 (Constant) -8528.541 891.886 -9.562 .000
HP 167.698 6.539 .874 25.645 .000 1.000 1.000
2 (Constant) -8600.532 837.005 -10.275 .000
HP 122.447 10.458 .638 11.709 .000 .344 2.905
Ground clearance (mm) 58.847 11.013 .291 5.344 .000 .344 2.905
3 (Constant) -17522.662 1962.723 -8.928 .000
HP 96.523 11.186 .503 8.629 .000 .269 3.713
Ground clearance (mm) 64.666 10.485 .320 6.168 .000 .340 2.941
TV .019 .004 .188 4.968 .000 .639 1.566
a. Dependent Variable: price

Dependent Variable: Price

Independent Variables:

 HP
 Ground clearance (mm)
 TV

Price= -17522.662+96.523X1+64.666X3+.019X4
The PP plots suggests that the model is a good fit as the values fall along the diagonal showing just a
slight deviation.

ASSUMPTIONS:

I. LINEARITY
 I. HETEROSCEDASTICITY

The analysis through examination of residuals shows no pattern of increasing or decreasing residuals. This finding indicates
heteroscedasticity in the multi-variate is followed.

I. NORMALITY

The PP plots suggests that the model is a good fit as the values fall along the diagonal showing just a slight deviation. This
shows that the assumption of normality is being followed.
 MULTI-COLLINEARITY

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients Collinearity Statistics
Model B Std. Error Beta t Sig. Tolerance VIF
1 (Constant) -8528.541 891.886 -9.562 .000
HP 167.698 6.539 .874 25.645 .000 1.000 1.000
2 (Constant) -8600.532 837.005 -10.275 .000
HP 122.447 10.458 .638 11.709 .000 .344 2.905
Ground clearance (mm) 58.847 11.013 .291 5.344 .000 .344 2.905
3 (Constant) -17522.662 1962.723 -8.928 .000
HP 96.523 11.186 .503 8.629 .000 .269 3.713
Ground clearance (mm) 64.666 10.485 .320 6.168 .000 .340 2.941
TV .019 .004 .188 4.968 .000 .639 1.566
a. Dependent Variable: price
Since the Tolerance value lies between 0-1 and the VIF < 10, there is no problem of multicollinearity. As indicated by Stevens (2002),
while there is no set rule of thumb on numerical values to compare the VIF, it is generally believed that if nay VIP exceeds 10, there
is a reason to worry about. Hence, there is no problem of multicollinearity.
MULTIPLE REGRESSION( TAKING ALL SCALE, DUMMY, INTERACTIVE DUMMY)

Excluded Variablesa
Collinearity Statistics
Partial Minimum
Model Beta In t Sig. Correlation Tolerance VIF Tolerance
1 Ground clearance (mm) .291b 5.344 .000 .352 .344 2.905 .344
TV .162b 3.958 .000 .268 .647 1.546 .647
b
Torque . . . . .000 . .000
b
Mileage -.200 -4.653 .000 -.311 .573 1.746 .573
Dummy hatchback -.085b -2.467 .014 -.171 .950 1.053 .950
Dummy convertible .078b 2.305 .022 .160 .984 1.016 .984
b
Dummy three door -.039 -1.146 .253 -.080 .999 1.001 .999
b
Dummy four door -.003 -.090 .928 -.006 .985 1.015 .985
Dummy five door .020b .577 .564 .041 .974 1.026 .974
Dummy four cylinder -.171b -4.667 .000 -.312 .781 1.281 .781
b
Dummy six cylinder .011 .257 .798 .018 .670 1.492 .670
b
Interactive effect of four -.070 -2.071 .040 -.144 .994 1.006 .994
cylinder to three door
Interactive effect of six cylinder -.007b -.207 .836 -.015 .985 1.015 .985
to four door
Interactive effect of hatchback -.059b -1.747 .082 -.122 1.000 1.000 1.000
to three door
Interactive effect of hatchback -.037b -1.076 .283 -.076 .990 1.010 .990
to fourdoor
Interactive effect of convertivle .111b 3.322 .001 .228 .987 1.013 .987
to six cylinder
Interactive effect of hatchback -.115b -3.342 .001 -.229 .929 1.076 .929
to fourcylinder
Interactive effect of hatchback -.013b -.394 .694 -.028 1.000 1.000 1.000
to five door
2 TV .188c 4.968 .000 .331 .639 1.566 .269
c
Torque . . . . .000 . .000
Mileage -.098c -1.845 .066 -.129 .358 2.796 .215
Dummy hatchback -.115c -3.571 .000 -.244 .927 1.079 .322
c
Dummy convertible .073 2.282 .024 .159 .983 1.017 .343
c
Dummy three door -.074 -2.287 .023 -.159 .964 1.038 .332
Dummy four door .015c .454 .650 .032 .975 1.026 .341
 Dummy five door .052c 1.590 .114 .111 .944 1.059 .325
c
Dummy four cylinder -.126 -3.419 .001 -.234 .715 1.398 .315
Dummy six cylinder -.044c -1.082 .280 -.076 .629 1.589 .323
c
Interactive effect of four -.083 -2.632 .009 -.183 .989 1.012 .340
cylinder to three door
Interactive effect of six cylinder -.014c -.434 .664 -.031 .984 1.016 .344
to four door
Interactive effect of hatchback -.089c -2.795 .006 -.193 .974 1.027 .335
to three door
Interactive effect of hatchback -.019c -.601 .548 -.042 .980 1.021 .341
to fourdoor
Interactive effect of convertivle .086c 2.694 .008 .187 .963 1.038 .336
to six cylinder
Interactive effect of hatchback -.112c -3.463 .001 -.237 .929 1.076 .337
to fourcylinder
Interactive effect of hatchback -.001c -.020 .984 -.001 .994 1.006 .342
to five door
3 Torque .d . . . .000 . .000
d
Mileage .011 .194 .846 .014 .293 3.415 .187
d
Dummy hatchback -.097 -3.115 .002 -.215 .911 1.098 .261
d
Dummy convertible .110 3.628 .000 .248 .939 1.065 .264
Dummy three door -.041d -1.310 .192 -.092 .915 1.093 .269
d
Dummy four door -.079 -2.272 .024 -.159 .740 1.352 .253
d
Dummy five door .036 1.135 .258 .080 .933 1.072 .262
d
Dummy four cylinder -.126 -3.637 .000 -.249 .715 1.398 .268
Dummy six cylinder -.001d -.013 .989 -.001 .597 1.676 .246
d
Interactive effect of four -.064 -2.101 .037 -.147 .970 1.031 .269
cylinder to three door
Interactive effect of six cylinder -.028d -.929 .354 -.066 .975 1.025 .269
to four door
Interactive effect of hatchback -.068d -2.229 .027 -.156 .953 1.049 .269
to three door
Interactive effect of hatchback -.066d -2.101 .037 -.147 .905 1.104 .266
to fourdoor
Interactive effect of convertivle .108d 3.562 .000 .244 .948 1.055 .269
to six cylinder
Interactive effect of hatchback -.095d -3.076 .002 -.213 .917 1.091 .268
to fourcylinder
 Interactive effect of hatchback -.017d -.554 .580 -.039 .983 1.017 .269
to five door
4 Torque .e . . . .000 . .000
Mileage .032e .588 .557 .042 .290 3.454 .183
e
Dummy hatchback -.096 -3.178 .002 -.220 .911 1.098 .260
e
Dummy convertible .122 4.175 .000 .284 .929 1.076 .262
e
Dummy three door -.028 -.890 .374 -.063 .900 1.111 .268
Dummy four door -.058e -1.681 .094 -.118 .714 1.400 .253
e
Dummy five door .015 .489 .625 .035 .899 1.112 .262
e
Dummy six cylinder -.156 -3.197 .002 -.221 .345 2.900 .240
e
Interactive effect of four -.041 -1.353 .178 -.095 .920 1.087 .268
cylinder to three door
Interactive effect of six cylinder -.060e -1.977 .049 -.139 .910 1.099 .268
to four door
Interactive effect of hatchback -.056e -1.859 .065 -.131 .940 1.064 .268
to three door
Interactive effect of hatchback -.055e -1.780 .077 -.125 .895 1.117 .265
to fourdoor
Interactive effect of convertivle .102e 3.454 .001 .238 .945 1.059 .268
to six cylinder
Interactive effect of hatchback -.066e -2.033 .043 -.143 .817 1.224 .267
to fourcylinder
Interactive effect of hatchback -.031e -1.037 .301 -.073 .968 1.034 .268
to five door
5 Torque .f . . . .000 . .000
f
Mileage .071 1.335 .183 .094 .281 3.554 .182
Dummy hatchback -.076f -2.560 .011 -.179 .882 1.134 .256
f
Dummy three door -.039 -1.296 .197 -.092 .893 1.120 .262
f
Dummy four door -.056 -1.669 .097 -.118 .714 1.400 .248
f
Dummy five door .025 .833 .406 .059 .894 1.118 .255
Dummy six cylinder -.141f -2.990 .003 -.208 .343 2.918 .233
f
Interactive effect of four -.048 -1.634 .104 -.115 .917 1.090 .262
cylinder to three door
Interactive effect of six cylinder -.061f -2.073 .039 -.146 .910 1.099 .262
to four door
Interactive effect of hatchback -.043f -1.454 .148 -.103 .927 1.079 .262
to three door
 Interactive effect of hatchback -.054f -1.834 .068 -.129 .895 1.117 .259
to fourdoor
Interactive effect of convertivle .064f 2.056 .041 .145 .803 1.246 .261
to six cylinder
Interactive effect of hatchback -.043f -1.370 .172 -.097 .790 1.265 .262
to fourcylinder
Interactive effect of hatchback -.031f -1.085 .279 -.077 .968 1.034 .262
to five door
6 Torque .g . . . .000 . .000
g
Mileage .093 1.771 .078 .125 .277 3.615 .179
Dummy hatchback -.082g -2.820 .005 -.197 .878 1.139 .230
g
Dummy three door -.034 -1.158 .248 -.082 .891 1.123 .233
g
Dummy four door -.033 -.971 .333 -.069 .669 1.495 .212
g
Dummy five door .022 .735 .463 .052 .893 1.120 .227
Interactive effect of four -.054g -1.858 .065 -.131 .914 1.095 .233
cylinder to three door
Interactive effect of six cylinder -.035g -1.149 .252 -.082 .805 1.243 .228
to four door
Interactive effect of hatchback -.041g -1.446 .150 -.102 .927 1.079 .233
to three door
Interactive effect of hatchback -.043g -1.464 .145 -.104 .878 1.139 .228
to fourdoor
Interactive effect of convertivle .076g 2.460 .015 .173 .793 1.262 .231
to six cylinder
Interactive effect of hatchback -.045g -1.444 .150 -.102 .790 1.265 .233
to fourcylinder
Interactive effect of hatchback -.035g -1.259 .210 -.089 .965 1.036 .233
to five door
7 Torque .h . . . .000 . .000
Mileage .079h 1.523 .129 .108 .274 3.651 .178
h
Dummy three door -.025 -.849 .397 -.061 .878 1.139 .230
h
Dummy four door -.036 -1.089 .277 -.078 .668 1.497 .209
h
Dummy five door -.003 -.105 .916 -.008 .812 1.232 .226
Interactive effect of four -.045h -1.584 .115 -.112 .902 1.108 .230
cylinder to three door
Interactive effect of six cylinder -.036h -1.187 .237 -.084 .805 1.243 .225
to four door
Interactive effect of hatchback -.016h -.520 .603 -.037 .815 1.226 .230
to three door
 Interactive effect of hatchback -.001h -.037 .970 -.003 .645 1.550 .228
to fourdoor
Interactive effect of convertivle .075h 2.476 .014 .174 .793 1.262 .228
to six cylinder
Interactive effect of hatchback .173h 2.499 .013 .176 .150 6.671 .150
to fourcylinder
Interactive effect of hatchback -.016h -.559 .577 -.040 .899 1.112 .229
to five door
8 Torque .i . . . .000 . .000
i
Mileage .079 1.542 .125 .110 .274 3.651 .150
Dummy three door -.027i -.928 .355 -.066 .878 1.140 .150
i
Dummy four door -.035 -1.077 .283 -.077 .668 1.497 .150
i
Dummy five door -.004 -.138 .891 -.010 .812 1.232 .150
i
Interactive effect of four -.051 -1.811 .072 -.129 .897 1.115 .149
cylinder to three door
Interactive effect of six cylinder -.041i -1.361 .175 -.097 .802 1.247 .149
to four door
Interactive effect of hatchback -.017i -.579 .564 -.041 .815 1.227 .150
to three door
Interactive effect of hatchback -.014i -.418 .676 -.030 .631 1.586 .146
to fourdoor
Interactive effect of convertivle .065i 2.152 .033 .152 .775 1.290 .147
to six cylinder
Interactive effect of hatchback -.005i -.188 .851 -.013 .878 1.139 .146
to five door
9 Torque .j . . . .000 . .000
j
Mileage .067 1.301 .195 .093 .270 3.706 .147
j
Dummy three door -.031 -1.095 .275 -.078 .873 1.146 .147
Dummy four door -.039j -1.196 .233 -.086 .666 1.501 .147
j
Dummy five door -.004 -.141 .888 -.010 .812 1.232 .147
j
Interactive effect of four -.047 -1.679 .095 -.120 .892 1.120 .145
cylinder to three door
Interactive effect of six cylinder -.035j -1.176 .241 -.084 .795 1.258 .146
to four door
Interactive effect of hatchback -.016j -.530 .597 -.038 .815 1.228 .147
to three door
Interactive effect of hatchback -.016j -.472 .638 -.034 .630 1.587 .144
to fourdoor
 Interactive effect of hatchback -.008j -.265 .791 -.019 .877 1.140 .143
to five door
a. Dependent Variable: price
b. Predictors in the Model: (Constant), HP
c. Predictors in the Model: (Constant), HP, Ground clearance (mm)
d. Predictors in the Model: (Constant), HP, Ground clearance (mm), TV
e. Predictors in the Model: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder
f. Predictors in the Model: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy convertible
g. Predictors in the Model: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy convertible, Dummy six cylinder
h. Predictors in the Model: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy convertible, Dummy six cylinder, Dummy
hatchback
i. Predictors in the Model: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy convertible, Dummy six cylinder, Dummy
hatchback, Interactive effect of hatchback to fourcylinder
j. Predictors in the Model: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy convertible, Dummy six cylinder, Dummy
hatchback, Interactive effect of hatchback to fourcylinder, Interactive effect of convertivle to six cylinder

The above mentioned are the excluded variables ad they have their sig level >0.05 which means there is no significance of these
variables on the regression line.

Model Summaryj
Adjusted R Std. Error of the Change Statistics
Model R R Square Square Estimate R Square Change F Change df1 df2 Sig. F Change
a
1 .874 .764 .763 3889.453713 .764 657.640 1 203 .000
2 .891b .793 .791 3649.649675 .029 28.553 1 202 .000
3 .903c .816 .813 3452.856530 .023 24.682 1 201 .000
d
4 .910 .827 .824 3352.365432 .011 13.231 1 200 .000
e
5 .917 .841 .837 3222.588857 .014 17.433 1 199 .000
6 .921f .848 .844 3160.168454 .007 8.939 1 198 .003
7 .924g .854 .849 3106.093372 .006 7.954 1 197 .005
h
8 .927 .859 .853 3065.553571 .005 6.245 1 196 .013
i
9 .928 .862 .855 3037.553580 .003 4.630 1 195 .033
a. Predictors: (Constant), HP
b. Predictors: (Constant), HP, Ground clearance (mm)
c. Predictors: (Constant), HP, Ground clearance (mm), TV
d. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder
e. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy convertible
f. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy convertible, Dummy six cylinder
g. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy convertible, Dummy six cylinder, Dummy hatchback
h. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy convertible, Dummy six cylinder, Dummy hatchback, Interactive
effect of hatchback to fourcylinder
i. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy convertible, Dummy six cylinder, Dummy hatchback, Interactive effect
of hatchback to fourcylinder, Interactive effect of convertivle to six cylinder
j. Dependent Variable: price

Here, we see that the Model 9 is the best model as the R square is the highest in model 9.

R – There is very high correlation of .928 between the variables.

R square – The regression model says that the variables explain 86.2% of the variation prices of the car.

Std. Error – is the estimate of deviation of the actual dependent variable (price) around the regression line.

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 9948685773.855 1 9948685773.855 657.640 .000b
Residual 3070953588.138 203 15127850.188
Total 13019639361.99 204
3
2 Regression 10329010925.89 2 5164505462.946 387.727 .000c
2
Residual 2690628436.101 202 13319942.753
Total 13019639361.99 204
3
3 Regression 10623273500.42 3 3541091166.810 297.016 .000d
9
Residual 2396365861.565 201 11922218.217
Total 13019639361.99 204
3
4 Regression 10771968563.87 4 2692992140.970 239.625 .000e
9
Residual 2247670798.115 200 11238353.991
 Total 13019639361.99 204
3
5 Regression 10953008652.13 5 2190601730.426 210.937 .000f
2
Residual 2066630709.861 199 10385078.944
Total 13019639361.99 204
3
6 Regression 11042279759.81 6 1840379959.969 184.284 .000g
1
Residual 1977359602.182 198 9986664.657
Total 13019639361.99 204
3
7 Regression 11119019602.96 7 1588431371.852 164.642 .000h
2
Residual 1900619759.031 197 9647816.036
Total 13019639361.99 204
3
8 Regression 11177706096.98 8 1397213262.123 148.677 .000i
6
Residual 1841933265.007 196 9397618.699
Total 13019639361.99 204
3
9 Regression 11220426670.37 9 1246714074.487 135.120 .000j
9
Residual 1799212691.614 195 9226731.752
Total 13019639361.99 204
3
a. Dependent Variable: price
b. Predictors: (Constant), HP
c. Predictors: (Constant), HP, Ground clearance (mm)
d. Predictors: (Constant), HP, Ground clearance (mm), TV
e. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder
f. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy
convertible
g. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy
convertible, Dummy six cylinder
h. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy
convertible, Dummy six cylinder, Dummy hatchback
i. Predictors: (Constant), HP, Ground clearance (mm), TV, Dummy four cylinder, Dummy
convertible, Dummy six cylinder, Dummy hatchback, Interactive effect of hatchback to
fourcylinder

Ho: The model is not a good fit

Ha: The model is a good fit.

Here the significance level<0.05, hence we reject the null hypothesis and conclude that
the model is a good fit.
 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta
1 (Constant) -8528.541 891.886
HP 167.698 6.539 .874
2 (Constant) -8600.532 837.005
HP 122.447 10.458 .638
Ground clearance (mm) 58.847 11.013 .291
3 (Constant) -17522.662 1962.723
HP 96.523 11.186 .503
Ground clearance (mm) 64.666 10.485 .320
TV .019 .004 .188
4 (Constant) -14032.517 2133.532
HP 93.703 10.888 .488
Ground clearance (mm) 53.537 10.629 .265
TV .019 .004 .188
Dummy four cylinder -2517.538 692.116 -.126
5 (Constant) -14954.407 2062.790
HP 87.021 10.588 .454
Ground clearance (mm) 51.942 10.225 .257
TV .022 .004 .221
Dummy four cylinder -2797.774 668.700 -.140
Dummy convertible 5783.738 1385.244 .122
6 (Constant) -12686.760 2160.351
HP 97.919 11.004 .510
Ground clearance (mm) 53.515 10.041 .265
TV .019 .004 .187
Dummy four cylinder -4454.125 858.439 -.224
Dummy convertible 5462.631 1362.651 .116
Dummy six cylinder -3444.806 1152.178 -.141
7 (Constant) -10798.369 2226.451
HP 94.332 10.890 .492
Ground clearance (mm) 57.759 9.983 .286
TV .017 .004 .168
Dummy four cylinder -4502.435 843.924 -.226
Dummy convertible 4755.435 1362.605 .101
Dummy six cylinder -3649.904 1134.795 -.150
The PP plots suggests that the model is a good fit as the values fall along the diagonal showing just a
slight deviation.

ASSUMPTIONS:
 I. LINEARITY

The graph when compared to the null plots shows that it does not have any non-linearity. The first assumption of linearity is
followed.

I. HETEROSCEDASTICITY
The analysis through examination of residuals shows no pattern of increasing or decreasing residuals. This finding indicates
heteroscedasticity in the multi-variate is followed.

NORMALITY
 The PP plots suggests that the model is a good fit as the values fall along the diagonal showing just a slight deviation. This
shows that the assumption of normality is being followed.

MULTI-COLLINEARITY

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients Collinearity Statistics
Model B Std. Error Beta t Sig. Tolerance VIF
1 (Constant) -8528.541 891.886 -9.562 .000
HP 167.698 6.539 .874 25.645 .000 1.000 1.000
2 (Constant) -8600.532 837.005 -10.275 .000
HP 122.447 10.458 .638 11.709 .000 .344 2.905
Ground clearance (mm) 58.847 11.013 .291 5.344 .000 .344 2.905
3 (Constant) -17522.662 1962.723 -8.928 .000
HP 96.523 11.186 .503 8.629 .000 .269 3.713
Ground clearance (mm) 64.666 10.485 .320 6.168 .000 .340 2.941
TV .019 .004 .188 4.968 .000 .639 1.566
4 (Constant) -14032.517 2133.532 -6.577 .000
HP 93.703 10.888 .488 8.606 .000 .268 3.732
Ground clearance (mm) 53.537 10.629 .265 5.037 .000 .312 3.207
TV .019 .004 .188 5.124 .000 .639 1.566
Dummy four cylinder -2517.538 692.116 -.126 -3.637 .000 .715 1.398
5 (Constant) -14954.407 2062.790 -7.250 .000
HP 87.021 10.588 .454 8.219 .000 .262 3.819
Ground clearance (mm) 51.942 10.225 .257 5.080 .000 .311 3.212
TV .022 .004 .221 6.099 .000 .610 1.641
Dummy four cylinder -2797.774 668.700 -.140 -4.184 .000 .708 1.412
Dummy convertible 5783.738 1385.244 .122 4.175 .000 .929 1.076
6 (Constant) -12686.760 2160.351 -5.873 .000
HP 97.919 11.004 .510 8.898 .000 .233 4.289
Ground clearance (mm) 53.515 10.041 .265 5.330 .000 .311 3.220
TV .019 .004 .187 5.027 .000 .554 1.805
Dummy four cylinder -4454.125 858.439 -.224 -5.189 .000 .413 2.420
Dummy convertible 5462.631 1362.651 .116 4.009 .000 .923 1.083
Dummy six cylinder -3444.806 1152.178 -.141 -2.990 .003 .343 2.918
7 (Constant) -10798.369 2226.451 -4.850 .000
HP 94.332 10.890 .492 8.662 .000 .230 4.349
 Ground clearance (mm) 57.759 9.983 .286 5.786 .000 .303 3.295
TV .017 .004 .168 4.531 .000 .537 1.864
Dummy four cylinder -4502.435 843.924 -.226 -5.335 .000 .413 2.421
Dummy convertible 4755.435 1362.605 .101 3.490 .001 .892 1.121
Dummy six cylinder -3649.904 1134.795 -.150 -3.216 .002 .341 2.930
Dummy hatchback -1309.393 464.274 -.082 -2.820 .005 .878 1.139
8 (Constant) -9270.147 2280.902 -4.064 .000
HP 89.158 10.946 .465 8.145 .000 .222 4.510
Ground clearance (mm) 61.162 9.946 .303 6.149 .000 .298 3.358
TV .017 .004 .168 4.569 .000 .536 1.864
Dummy four cylinder -5899.049 1003.036 -.296 -5.881 .000 .285 3.511
Dummy convertible 4874.359 1345.662 .103 3.622 .000 .891 1.122
Dummy six cylinder -3922.965 1125.302 -.161 -3.486 .001 .338 2.958
Dummy hatchback -3676.190 1052.131 -.230 -3.494 .001 .167 6.005
Interactive effect of hatchback 2839.576 1136.301 .173 2.499 .013 .150 6.671
to fourcylinder
9 (Constant) -9555.517 2263.957 -4.221 .000
HP 92.047 10.929 .480 8.423 .000 .218 4.579
Ground clearance (mm) 58.370 9.941 .289 5.872 .000 .293 3.416
TV .017 .004 .169 4.638 .000 .536 1.864
Dummy four cylinder -5707.462 997.855 -.286 -5.720 .000 .283 3.540
Dummy convertible 3636.891 1452.107 .077 2.505 .013 .751 1.331
Dummy six cylinder -4157.276 1120.328 -.171 -3.711 .000 .335 2.986
Dummy hatchback -3366.033 1052.438 -.211 -3.198 .002 .163 6.119
Interactive effect of hatchback 2478.532 1138.356 .151 2.177 .031 .147 6.819
to four cylinder
Interactive effect of convertible 7441.039 3458.112 .065 2.152 .033 .775 1.290
to six cylinder
a. Dependent Variable: price
Since the Tolerance value lies between 0-1 and the VIF < 10, there is no problem of multicollinearity. As indicated by Stevens (2002),
while there is no set rule of thumb on numerical values to compare the VIF, it is generally believed that if nay VIP exceeds 10, there
is a reason to worry about. Hence, there is no problem of multicollinearity.