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 regression equation. (Round your answers to 3 decimal places. Negative amounts should be indicated by a minus sign.)

  

Estimate the selling price of a 10-year-old car (in $000). (Round your answer to 3 decimal places.)

Interpret the regression equation (in dollars). (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

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

here

b=Sxy/Sxx =-0.479

and b0=ybar-Xbar*b1 =11.177

hence regression equation :Y=11.177-0.479x

b)for x=10; selling price =11.177-0.479*10= 6.387 (in $000)

c)For each additional year, the car decreases $ 0.479*1000=$479 in value

x y (X-Xbar)^2 (Y-Ybar)^2 (X-Xbar)(Y-Ybar) Yi' (Y-Yi')^2 9.00 8.10 0.01 1.42 2.49 6.868437 1.51674736 7.00 6.00 3.67 0.83 -0.08 7.825948 3.33408758 11.00 3.60 4.34 10.95 -13.54 5.910926 5.34037734 12.00 4.00 9.51 8.46 -14.81 5.43217 2.05111078 8.00 5.00 0.84 3.64 -2.08 7.347193 5.50931365 7.00 10.00 3.67 9.56 0.28 7.825948 4.72650033 8.00 7.60 0.84 0.48 0.76 7.347193 0.06391152 11.00 8.00 4.34 1.19 4.47 5.910926 4.36423166 10.00 8.00 1.17 1.19 3.38 6.389681 2.5931262 12.00 6.00 9.51 0.83 -4.62 5.43217 0.32243096 6.00 8.60 8.51 2.86 -1.54 8.304704 0.08719967 6.00 8.00 8.51 1.19 -0.99 8.304704 0.09284459 Total 107.00 82.90 54.92 42.59 -26.29 30.0018816 mean 8.92 6.91 SSx Ssy Sxy

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