The owner of Maumee Ford Mercury Volvo wants to study the relationship between t

Question

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 atthe dealership during the last year. 76 6.0 8.0 3.6 80 12 4.0 10 12 6.0 5.0 86 10.0 12 80 a. we want to estimate selling prioe the basis of age variable is the dependent variable and which is the of the car, which the independent variable? Click to select) v is independent v (Click selectM b-1. Determine the correlation coefficient Negative amounts should be indicated by a minus sign Round your answers 3 decimal places. 0.0 8.1 1.192 0.007 1 420 7,0 60 11.0 3.6 4,240 10945 120 3083 0458 8.0 5.0 -0.917 3642 7,0 10.0 1917 8.0 7.6 -0,917 0840 -0,967 1,749 Vibration has been detected

Explanation / Answer

a.

Step 1: Find XY , X2 and Y2 as it was done in the table below.

Step 2: Find the sum of every column to get:

Step 3: Use the following formula to work out the correlation coefficient.

r=nsum(xy)-sumx.sumy/(sqrt(nsumx^2-(sumx)^2)(nsumy^2-(sumy)^2))=-0.5436

b. Coefficient of determination=r^2=0.2955

c. it gives negative correlation between X and Y which means correlation is in opposite directions i.e when x increases y decreases.

No i am not surprised as correlation is not determined by sign but by the degree.

X Y XY XX YY   9 8.1 72.9 81 65.61 7 6 42 49 36 11 3.6 39.6 121 12.96 12 4 48 144 16 8 5 40 64 25 7 10 70 49 100 8 7.6 60.8 64 57.76 11 8 88 121 64 10 8 80 100 64 12 6 72 144 36 6 8.6 51.6 36 73.96 6 8 48 36 64

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