Question

EXCEL FILE:

The accompanying table shows a portion of data consisting of the selling price, the age, and the mileage for 20 used sedans Selling Price AgeMiles 8 61,474 7 54,367 13,636 13,736 11,989 6 42,360 Clic Clic a. Determine the sample regression equation that enables us to predict the price of a sedan on the basis of its age and mileage (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) [If you are using R to obtain the output, then first enter the following command at the prompt: options(scipen-10). This will ensure that the output is not in scientific notation.] Price Miles Age + b. Interpret the slope coefficient of Age The slope coefficient of Age is -0.03, which suggests that for every additional year of age, the predicted price of car decreases by $0.03 The slope coefficient of Age is -1021.82, which suggests that for every additional year of age, the predicted price of car decreases by $1021.82 The slope coefficient of Age is -331.64, which suggests that for every additional year of age, the predicted price of car decreases by $331.64, holding number of miles constant. The slope coefficient of Age is -0.03, which suggests that for every additional year of age, the predicted price of car decreases by $0.03, holding number of miles constant. c. Use the predict() function in R or use the regression output to predict the selling price of a four-year-old sedan with 65,000 miles. (Round answer to 2 decimal places.) Price-$

SellingPrice	Age	Miles
13636	8	61474
13736	7	54367
22956	3	8231
15317	1	24820
16401	2	22116
16639	5	23656
16971	3	47394
18474	1	16896
18844	7	35442
19816	5	29608
11900	10	55750
14957	3	46159
15903	3	37020
16489	1	45471
9499	6	86902
12956	7	77211
15722	4	59600
10463	10	93226
8991	11	48227
11989	6	42360

Answer 1

Applying regression on above data:

a)

Price=21016.23+(-331.664)*Age+(-0.09)*Miles

b)

the slope coefficient of age is -331.64, which suggest tht....decreases by $331.64 , holding number of miles constant

c)

predicted price =13692.57