A used car dealer wants to develop a regression equation that determines mileage

Question

A used car dealer wants to develop a regression equation that determines mileage as a function of the age of a car in years. He collects the data shown below for the 12 cars he has on his lot. Assignment 10q4 data a) What is the slope of the regression equation? Give your answer to two decimal places. b) What is the value of the correlation coefficient? Give your answer to two decimal places. c) A 4 year old car is delivered to his lot with 160000 miles. Manually enter these values in the data table above and rerun the regression analysis. What is the value of the slope? Give your answer to two decimal places. d) Including the additional car, what is the value of the correlation coefficient? Give your answer to two decimal places. e) Did the additional car strengthen or weaken the linear relationship between age and mileage? Can not be determined. It strengthened the linear relationship. It weakened the linear relationship. Age,Mileage 5,38924 15,150154 12,119926 9,98592 9,86501 9,96032 14,152403 4,22140 6,51097 14,155725 7,76760 9,82081

Explanation / Answer

Part-a

Slope =11960.26

Part-b

Correlation =0.99

Part-c

Slope=8207.67

Part-d

Correlation=0.68

Part-e

the additional car weaken the linear relationship between age and mileage

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