Alinear model to predict the Price of a used car (in S) from its Mileage (in mil

Question

Alinear model to predict the Price of a used car (in S) from its Mileage (in miles) was fit to 33 used cars that were available during a one-week period within 200 miles of a particular city The model is shown below. Complete parts a through g below. Price -21,251.19 -0.11072 Mileage a) What is the explanatory variable? O A. Price, because the mileage of the car is used to predict the price O B. Mileage, because the price of the car is used to predict the mileage O C. Price, because the price of the car is used to predict the mileage O D. Mileage, because the mileage of the car is used to predict the price b) What is the response variable? O A. Price, because the mileage of the car is predicted from the price O B. Mileage, because the price of the car is predicted from the mileage o C. Price, because the price of the car is predicted from the mileage O D. Mileage, because the mileage of the car is predicted from the price

Explanation / Answer

Solution:

a) D) Mileage because the mileage of the car is used to predict th eprice.

b) C) Price, because the price of the car is predicted from the mileage.

c) A) Used car lose, on average $110.72 in value for every additional 1000 miles on the odometer.

d) C) The Y intercept $21,251.19 is a base value that is meaningful because a car with zero miles would be considered new.

e) Price for 75,000 miles is $12947.19.

Price = 21,251.19 - 0.11072*Mileage

Price = 21,251.19 - 0.11072*75,000

Price = $12947.19

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