SOLUTION: The owner of Maumee Ford-Mercury-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

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Question 1099773:
The owner of Maumee Ford-Mercury-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 Age(years) Selling Price($000) Car Age(years) Selling Price($000)
1 11 12.1 7 10 10.5
2 8 10.5 8 14 9.0
3 14 5.7 9 13 9.0
4 17 4.9 10 17 4.5
5 9 5.0 11 6 12.5
6 8 13.4 12 6 11.5

PictureClick here for the Excel Data File

a.
Determine the regression equation. Use the rounded slope value to compute the y-intercept. (Round your answers to 3 decimal places. Negative amounts should be indicated by a minus sign.)

a = ___

b = ___

b.
Estimate the selling price (in dollars) of a 7-year-old car. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

$____

c.
Interpret the regression equation (in dollars). (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

For each additional year, the car decreases $ ___ in value.
Answer by Fombitz(32388) (Show Source):
You can put this solution on YOUR website!
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$11564
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$616