Question 53391This question is from textbook Applied College Algebra
: 14. The data in the table below show the trade-in values for a 2-door, 1998 Ford Explorer utility vehicle in excellent condition for various odometer readings (in thousands of miles).
Trade-in Value of a 1998 Ford Explorer, June 2002
Odemeter Trade-in Odometer Trade-in
reading value reading value
45 $9560 65 $8660
50 $9435 75 $8110
55 $9285 90 $7410
60 8960 a.compute the linear regression equation for these data.
b. On the basis of this model, what is the expected trade-in value of a similar Ford Explorer with 80,000 miles on the odemeter? Round to the nearest whole number.
This question is from textbook Applied College Algebra
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! reading value reading value
45 $9560 65 $8660
50 $9435 75 $8110
55 $9285 90 $7410
60 8960
a.compute the linear regression equation for these data.
Using the TI-83 Linear Regression capability I find the following:
expected trade = -50.1856..(mileage in thousands)+11928.81
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b. On the basis of this model, what is the expected trade-in value of a similar Ford Explorer with 80,000 miles on the odemeter? Round to the nearest whole number.
ev(80)=-50.1856(80)+11928.81
ev(80)=7914
Cheers,
Stan H.
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