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 1 2 Age (years) 12 9 13 17 11 3 4 Selling Price ($000) 9.3 7.6 3.0 4.0 5.3 9.8 8.4 6.2 6.2 4.8 6 7 8 9 10 11 12 13 12 14 13 17 7 7 10.1 9.1 Click here for the Excel Data File a. Determine the regression equation. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.) a = b=

Answer 1

301:- cas Regression equation linear 19= 13.31462 -0.538832 las 13.315 b -0.539 (b) x=6 = (9) ĝ= 13.31462-0.53883 (6) 10.0816 v10.082 slope of regression equation = -0.539 For each additional year -0-539x1000 $539 in value. the car decreases

11 - X Values 12 9 13 17 11 9 12 14 13 17 7 7 Y Values 9.3 7.6 3.0 4.0 5.3 9.8 8.4 6.2 6.2. 4.8 10.1 9.1 9 Y.Dependent 7 5 M: 11.75 M: 6.9833 3+ 7 9 15 17 11 13 X-Independent Regression Line (y = -0.54x + 13.31) Estimate Estimated Y 10.0816 6 Calculation Summary Sum of X= 141 Sum of Y = 83.8 Mean X = 11.75 Mean Y = 6.9833 Sum of squares (55x) = 124.25 Sum of products (SP) = -66.95 Regression Equation = = bx + a b= SPISSX = -66.95/124.25 = -0.53883 a = My-bMx = 6.98 - (-0.54*11.75) = 13.31462 y = -0.53883X + 13.31462 Y- My X-MX 0.25 -2.75 1.25 5.25 -0.75 -2.75 0.25 2.25 1.25 5.25 -4.75 -4.75 2.3167 0.6167 -3.9833 -2.9833 -1.6833 2.8167 1.4167 -0.7833 -0.7833 -2.1833 3.1167 2.1167 (X - MX)2 0.0625 7.5625 1.5625 27.5625 0.5625 7.5625 0.0625 5.0625 1.5625 27.5625 22.5625 22.5625 (X - MX/Y - My) 0.5792 -1.6958 -4.9792 - 15.6625 1.2625 - 7.7458 0.3542 -1.7625 -0.9792 -11.4625 -14.8042 - 10.0542 SS: 124.25 SP: -66.95
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Answer 2

3: The owner of Maumee Ford-Mercury 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 1 2 3 4 5 6 7 8 Age (years) 9 7 11 12 8 7 8.0 11 Selling Price ($000) 8.1 6.0 3.6 4.0 5.0 10 7.6 8.0 a) If we want to estimate selling price on the basis of the age of the car, which variable is the dependent variable and which is the independent variable? Also estimate regression line b) Draw a scatter diagram. c) Determine the coefficient of correlation. d) Interpret these statistics. Does it surprise you that the relationship is inverse?