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)|
Determine the regression equation. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)
Estimate the selling price of an 10-year-old car (in $000). (Round your answer to 3 decimal places.)
Interpret the regression equation (in dollars). (Round your answer to the nearest dollar amount.)
( a )
( b ) Given x = 10 then
y = 121.079 − 0.884 ( 10 )
y = 112.239
( c )
slope indicates that every 1-year increase in Age decreases the
Price of cars of this model by 0.884, on
The y-intercept means that a new car of this model costs 121.079 on average.
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