Question

A linear model to predict the Price of a used car​ (in $) from its Mileage​ (in miles) was fit to 33 used cars that were available during a​ one-week period within 200 miles of a particular city. The model is shown below. Complete parts a through g below.

Price=21,253.54−0.11024 Mileage

​a) What is the explanatory​ variable?

A.​Price, because the mileage of the car is used to predict the price

B.​Price, because the price of the car is used to predict the mileage

C.​Mileage, because the price of the car is used to predict the mileage

D.​Mileage, because the mileage of the car is used to predict the price

​b) What is the response​ variable?

A.​Price, because the mileage of the car is predicted from the price

B.​Mileage, because the price of the car is predicted from the mileage

C.​Price, because the price of the car is predicted from the mileage

D.​Mileage, because the mileage of the car is predicted from the price

​

c) What does the slope mean in this​ context?

A.Used cars​ lose, on​ average, about $0.11 in value for every additional 1000 miles on the odometer.

B.Used cars​ gain, on​ average, about ​$110.24 in value for every additional 1000 miles on the odometer.

C.Used cars​ gain, on​ average, about $0.11 in value for every additional 1000 miles on the odometer.

D.Used cars​ lose, on​ average, about​ $110.24 in value for every additional 1000 miles on the odometer.

​d) What does the​ y-intercept mean in this​ context? Is it​ meaningful?

A.The​ y-intercept $21,253.54 is a base value that is meaningful because a car with 0 miles would be considered new.

B.The​ y-intercept

21 comma 253.5421,253.54

miles is a base value that is not meaningful because the price will not be​ $0.

C.The​ y-intercept 21,253.54 miles is a base value that is meaningful because the price will be​ $0.

D.The​ y-intercept​ $21,253.54 is a base value that is not meaningful because a car with 0 miles would not be considered used.​

e) What do you predict the price to be for a car with 75,000 miles on​ it?

The predicted price is $______

​f) If the price for a car with 75,000 miles on it was 14,000​, what would the residual​ be?

The residual would be $_______

​g) Would that car for $14,000 and 75,000 miles seem like a good deal or a bad​ deal? Explain.

It is a▼

bad

good

deal because 14,000

is

▼

less than

equal to

greater than

the predicted price of a car with 75,000 miles.

Answer 1

a)
A.​Price, because the mileage of the car is used to predict the price

b)
B.​Mileage, because the price of the car is predicted from the mileage

c)
D.Used cars​ lose, on​ average, about​ $110.24 in value for every additional 1000 miles on the odometer.

d)
A.The​ y-intercept $21,253.54 is a base value that is meaningful because a car with 0 miles would be considered new.

e)
for x = 75000
Price=21,253.54−0.11024*75000
= 12985.54

f)
residual = 14000 - 12985.54
= 1014.46

g)
It is bad deal because 14000 is greater than the predicted value