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. Car Age (years) Selling Price ($000) Car Age (years) Selling Price ($000) 1 9 10.4 7 8 9.1 2 6 8.6 8 12 7.5 3 11 4.3 9 9 7.5 4 15 3.5 10 15 2.1 5 8 5.1 11 5 11.1 6 6 11.0 12 5 10.1 PictureClick here for the Excel Data File a. Determine the regression equation. Use the rounded slope value to compute the y-intercept. (Round your answers to 3 decimal places. Negative amounts should be indicated by a minus sign.) a = b = b. Estimate the selling price (in dollars) of a 12-year-old car. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) $ c. Interpret the regression equation (in dollars). (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) For each additional year, the car decreases $ in value.

Explanation / Answer

a)

Regression Equation

Selling Price ($000) = 14.20 - 0.735 Car Age (Years)

Slope = b = 0.735

Y intercept = a = 14.2

b) The estimated selling price (in dollars) of a 12-year-old car

= 14.2-(0.735*12) = 5.38

c) Interpretation of the regression equation :

For each additional year, the car decreases $0.735 in value.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.