The accomganýing table shows a portion of datacisting of th selig prioe, the age

Question

The accomganýing table shows a portion of datacisting of th selig prioe, the age and the mlesge fo 20 used sedans. Click here for the Excel Data File Selling Price AgeMiles 61,490 54,361 8,222 24,808 22,085 23,729 47,412 16,818 35,391 29,610 55,786 46,221 36,951 45,545 86,910 77,272 59,618 93,252 48,277 42,382 13,583 13,715 22,919 5,320 16,361 16,602 16,998 18,400 18,896 19,898 11,877 14,911 15,928 16,475 9.477 2,910 15,739 10,550 8,916 11,986 10 a. Determine the sample regression equation that enables us to predict the price of a sedan on the basis of its age and mileage. (Negative values should be indicated by a minus sign. Round your answer to 2 decimal places.) b. Interpret the slope coefficient of Age. The slope coefficlent of Age is -393.27, which suggests that for every additional year of age, the predicted price of car decreases by $393.27 The slope coefficient of Age is -0.08, which suggests that for every additional year of age, the predicted price of car decreases by $0.08. The slope coefficient of Age is -393.27, which suggests that for every additional year of age, the predicted price of car decreases by $393.27, holding number of miles constant The slope coefficient of Age is-0.08, which suggests that for every additional year of age, the predicted price of car decreases by $0.08, holding number of miles constant. c. Predict the selling price of a three-year-old sedan with 64,000 miles. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places)

Explanation / Answer

a)
The regression equation is
Selling Price = 21077 - 393 Age - 0.0843 Miles

b) Correct answer:Option (C)

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