Question

An auto manufacturing company wanted to investigate how the price of one of its car models depreciates with age. The research department at the company took a sample of eight cars of this model and collected the following information on the ages (in years) and prices (in hundreds of dollars) of these cars. Age 7 4 4 5 4 2 7 7 Price 33 58 65 46 57 84 39 32 Find the least squares regression line equation in the form y ^ = a + b x . Use "Age" as the independent variable and "Price" as the dependent variable.

Round your answers to four decimal places.

y^=+()x

Predict the price of a 4 year-old car of this model.

Round your answer to one decimal place.

ypred=

Answer 1

ANSWER: y 7 (x-x2 -18.75 4 G 25 13.95 1-5.75 o 535 1.2 (x-x)(y-7) 391 5695 - 37.5 390625 -6.95 175.5625 -13.95 33.06950 27 5685 -5.25 1040-0625 -- 96.75 1625695 -25.5 390.0695 -39.5 2219.5 -994 84 -3 38 259 9 39 38 25 -1975 -19.75 1 0 4 4 94 a 0 414 *5x = x 405 ỹ psy a tut • 51 75 b. (x-*)(y-7) 994 2 (M-5) 94 - : -9 3333 Q: Y-68: 9775-4-9.3333)(5) 98.4165 the regression line i 9 . 046%. 92.4165+(-93333 whene X-.4 y predit : 98.4165 +(-9.3333x4) : 61.0833 IG!:08]