Question

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) |

1 | 12 | 10.3 |

2 | 10 | 9.2 |

3 | 15 | 4.6 |

4 | 18 | 4.2 |

5 | 12 | 5.1 |

6 | 10 | 11.6 |

7 | 12 | 8.0 |

8 | 16 | 7.8 |

9 | 14 | 7.8 |

10 | 18 | 4.3 |

11 | 8 | 10.0 |

12 | 8 | 8.8 |

a) Determine the regression equation

a= | |

b= |

b) Estimate the selling price of a 13-year-old car (in $000)

c) Interpret the regression equation (in dollars).

Answer #1

a)

X | Y | X⋅Y | X⋅X |

12 | 10.3 | 123.6 | 144 |

10 | 9.2 | 92 | 100 |

15 | 4.6 | 69 | 225 |

18 | 4.2 | 75.6 | 324 |

12 | 5.1 | 61.2 | 144 |

10 | 11.6 | 116 | 100 |

12 | 8 | 96 | 144 |

16 | 7.8 | 124.8 | 256 |

14 | 7.8 | 109.2 | 196 |

18 | 4.3 | 77.4 | 324 |

8 | 10 | 80 | 64 |

8 | 8.8 | 70.4 | 64 |

**a = 14.667**

**b = - 0 .551**

**b) x = 13**

**y = 14.667 - 0.551 ( 13 )**

**= 7.504**

**c) Slope : each additional year, selling price decreased
by 0.551**

**Intercept : selling price is 14,667 at 0 ^{th}
year .**

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)
1
12
10.7
2
8
8.8
3
13
3.0
4
15
2.7
5
10
6.0
6
9
12.1
7
10
9.0
8
13
7.8
9
12
7.8
10
15
4.7
11
6
10.8
12
6
8.9...

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)
1
10
11.7
2
7
10.7
3
12
5.1
4
13
4.8
5
8
8.0
6
8
13.1
7
8
10.2
8
12
9.6
9
11
9.6
10
13
3.7
11
6
11.5
12
6
10.2...

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)
1
11
12.2
2
8
11.0
3
16
4.9
...

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)
1
9
8.1
2
7
6.0
3
11
3.6
4
12
4.0
5
8
5.0
6
7
10.0
7
8
7.6
8
11
8.0
9
10
8.0
10
12
6.0
11
6
8.6
12
6
8.0...

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)
1
10
8.3
2
7
6.9
3
14
1.4
4
18
2.4
5
8
6.8
6
8
9.4
7
8
7.5
8
15
5.6
9
13
5.6
10
18
3.1
11
6
9.4
12
6
7.6...

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)
1
12
9.3
2
9
7.6
3
13
3.0
4
17
4.0
5
11
5.3
6
9
9.8
7
12
8.4
8
14
6.2
9
13
6.2
10
17
4.8
11
7
10.1
12
7
9.1...

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)
1
9
10.5
2
6
8.6
3
12
3.1
4
14
3.0
5
7
7.0
6
7
11.4
7
7
8.2
8
12
6.9
9
12
6.9
10
14
2.1
11
5
9.6
12
5
8.5...

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)
1
9
8.1
2
7
6.0
3
11
3.6
4
12
4.0
5
8
5.0
6
7
10.0
7
8
7.6
8
11
8.0
9
10
8.0
10
12
6.0
11
6
8.6
12
6
8.0...

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
15
12.0
7
13
9.7
2
10
10.1
8
17
9.0
3
17
5.4
9
16
9.0
4
19
4.9
10
19
4.9
5
12
5.6
11
8
11.4...

The owner of Maumee Motors 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 Maumee Motors last year:
Car
Age (years)
Selling Price ($000)
1
7
4.5
2
8
7.7
3
6
9.4
4
2
7.2
5
4
4.7
6
11
4
7
15
6.2
8
14
7.7
9
7
9.9
10
10
6.6
11
9
6.4
12
11
7.6
Determine the...

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