The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between t
ID: 3180482 • Letter: 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. Car Age (years) Selling Price ($000) Car Age (years) Selling Price ($000) 1 9 8.1 7 8 7.6 2 7 6.0 8 11 8.0 3 11 3.6 9 10 8.0 4 12 4.0 10 12 6.0 5 8 5.0 11 6 8.6 6 7 10.0 12 6 8.0 Picture Click here for the Excel Data File a. If we want to estimate selling price on the basis of the age of the car, which variable is the dependent variable and which is the independent variable? is the independent variable and is the dependent variable. b-1. Determine the correlation coefficient. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.) X Y Picture Picture (Picture )2 (Picture )2 (Picture )(Picture ) 9.0 8.1 1.192 0.007 1.420 0.099 7.0 6.0 -0.908 3.674 0.825 1.741 11.0 3.6 2.083 4.340 10.945 -6.892 12.0 4.0 3.083 9.507 8.458 -8.967 8.0 5.0 -0.917 -1.908 3.642 1.749 7.0 10.0 -1.917 3.092 9.558 -5.926 8.0 7.6 -0.917 0.692 0.840 -0.634 11.0 8.0 2.083 1.092 4.340 2.274 10.0 8.0 1.083 1.092 1.174 1.192 12.0 6.0 3.083 -0.908 9.507 0.825 6.0 8.6 -2.917 1.692 8.507 2.862 -4.934 6.0 8.0 -2.917 1.092 8.507 1.192 -3.184 107.000 82.900 Picture = Picture = sx = sy = r = b-2. Determine the coefficient of determination. (Round your answer to 3 decimal places.) c. Interpret the correlation coefficient. Does it surprise you that the correlation coefficient is negative? (Round your answer to nearest whole number.) correlation between age of car and selling price. So, % of the variation in the selling price is explained by the variation in the age of the car.
Explanation / Answer
Answer:
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. Car Age (years) Selling Price ($000) Car Age (years) Selling Price ($000)
1 9 8.1 7 8 7.6
2 7 6.0 8 11 8.0
3 11 3.6 9 10 8.0
4 12 4.0 10 12 6.0
5 8 5.0 11 6 8.6
6 7 10.0 12 6 8.0
Picture Click here for the Excel Data File
Age of the car is the independent variable and selling price is the dependent variable.
0.296
c. Interpret the correlation coefficient. Does it surprise you that the correlation coefficient is negative? (Round your answer to nearest whole number.)
Moderate correlation between age of car and selling price . So, 30% of the variation in the selling price is explained by the variation in the age of the car.
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