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				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

1. Determine the standard error of estimate. (Round your answer to 3 decimal places.)

Standard error of estimate

2. Determine the coefficient of determination. (Round your answer to 3 decimal places.

Coefficient of determination

3. Interpret the coefficient of determination. (Round your answer to the nearest whole number.)

   percent of the variation in the selling price is explained by the variation in the age of the car.

Answer 1

a)

standard error of estimate =1.732

b)

coefficient of determination =0.296

c)

30 percent of the variation in the selling price is explained by the variation in the age of the car.