Question

Following are age and price data for 10 randomly selected cars between 1 and 6 years old. Here, x denotes age in, in years, and y denotes price, in hundreds of dollars. Use the information to complete parts (a) through (g).

x : 6,6,6,2,2,5,4,5,1,4

y: 280,285,305,425,389,325,355,328,415,330

Predict the value of the response variable for a 22​-year-old car and a 33​-year-old ​car, and interpret your results.

For a 22​-year-old ​car, the predicted price is $ _____

For a 33-year-old car, the predicted price is $ _____

Answer 1

Ans:

	x	y
1	6	280
2	6	285
3	6	305
4	2	425
5	2	389
6	5	325
7	4	355
8	5	328
9	1	415
10	4	330
mean	4.1	343.7
std. dev.=	1.853	51.271
r=	-0.963
slope,b	-26.657
y intercept,a	452.994

Regression equation:

y'=-26.657 x+452.99

For a 2​-year-old ​car, the predicted price is ,y'=-26.657*2+452.99=399.68 $

For a 3-year-old car, the predicted price is,y'=-26.657*3+452.99=373.02 $