The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between t

Question

The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.

Determine the correlation coefficient. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.

Explanation / Answer

The correlation between age and price is -0.54365

y = bx + a

b = correlation * stdev of price/ stdev of age
b = -.54365 * 1.967674/2.234373
b = -.4788

a = ave price - avg age*b
a = .6908 - (-.4788*8.9167)
a = 4.96

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