Question

ILLALLIC ULLLLS LL 11 13 U bout 2) There is a linear relationship between the age of a certain model of car in years) and its price in hundreds of dollars). Partial analysis of data on this relationship provides the following: $x =1.421 $ = 31.159 Minimum x-value = 2 years Maximum x-value = 5 years Parameter Estimate Std. Err. Intercept 195.47 15.240 ob Slope -20.26 2.800 Which statement(s) is (are) true? I. The correlation coefficient, r=0.924. II. According to this model, the predicted price for a 4-year-old car is $11,443. III. We can use the intercept and predict a brand new car should be worth $195.47. o A) Only Iont B) Only IIo Do C) I and II only to D) II and III only E) I, II and III b o lo bolo g to to

Answer 1

the correct option is:-   only II. (B)

[ explanation:-

i).correlation coefficient = 0.924 is false,because,

the slope is negative, indicate that the correlation should be negative.

ii).the predicted price for a 4 year old model is $ 11443, this statement is true because,

the predicted price be: = 195.47 + (-20.26 * 4) = 114.43 hundred dollars = $ 11443.

iii).we can use the intercept and predict a brand new car should be worth $ 195.47, this is false,because,

x= 0 is beyond the scope of the model...as minimum x value = 2 years.]

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