Develop a multiple-regression model for auto sales as a function of population and household income from the following data for 10 metropolitan areas:
a. Estimate values for b0, b1, and b2 for the following model:
AS b0 b1(INC) b2(POP)
b. Are the signs you find for the coefficients consistent with your expectations? Explain.
c. Are the coefficients for the two explanatory variables significantly different from zero? Explain.
d. What percentage of the variation in AS is explained by this model?
e. What point estimate of AS would you make for a city where INC $23,175 and POP 128.07? What would the approximate 95 percent confidence interval be?