Mathematics, 14.01.2020 17:31 blake2001
Table below shows the age in years and the retail value in thousands of dollars of a random sample of ten automobiles of the same make and model.
x 2 3 3 3 4 4 5 5 5 6
y 28.7 24.8 26.0 30.5 23.8 24.6 23.8 20.4 21.6 22.1
a) construct the scatter diagram.
b) compute the linear correlation coefficient r. interpret its value in the context of the problem.
c) compute the least squares regression line. plot it on the scatter diagram.
interpret the meaning of the slope of the least squares regression line in the context of the problem.
d) suppose a four-year-old automobile of this make and model is selected at random. use the regression equation to predict its retail value.
e) suppose a 20 -year-old automobile of this make and model is selected at random. use the regression equation to predict its retail value. interpret the result.
f) comment on the validity of using the regression equation to predict the price of a brand new automobile of this make and model.
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