Answered

At Westonci.ca, we make it easy to get the answers you need from a community of informed and experienced contributors. Discover detailed solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

The owner of Maumee Ford-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 8 11 8
3 11 3.6 9 10 8
4 12 4 10 12 6
5 8 5 11 6 8.6
6 7 10 12 6 8


Required:
a. Determine the regression equation.
b. Estimate the selling price of a 10-year-old car (in $000).
c. Interpret the regression equation (in dollars).

Sagot :

fichoh

Answer:

ŷ = -0.47876X + 11.17724

$6.4

Step-by-step explanation:

Given the data :

Car Age (years) Selling Price ($000) Car Age (years) Selling Price ($000)

1 9 8.1 7 8 7.6

2 7 6 8 11 8

3 11 3.6 9 10 8

4 12 4 10 12 6

5 8 5 11 6 8.6

6 7 10 12 6 8

The estimated regression equation using a linear regression calculator is :

y = -0.47876X + 11.17724

With - 0.47876 being the slope ; and 11.17724 being the intercept

y = predicted variable (price of car) ; x = predictor variable (Age of car)

Selling price of a 10 year old car : x = 10

ŷ = -0.47876(10) + 11.17724

Price = 6.38964

About 6.4(000) dollars ($6,400)

According to the regression equation : The starting price of cars is about $11.18 (intercept) with the proved of cars declining by a value of $0.479(negative slope value) each year.

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.