The accompanying table shows a portion of data consisting of the selling price,

Question

The accompanying table shows a portion of data consisting of the selling price, the age, and the mileage for 20 used sedans. a. Determine the sample regression equation that enables us to predict the price of a sedan on the basis of its age and mileage. (Negative values should be indicated by a minus sign. Round your answer to 2 decimal places.) price = + Age + miles b. Interpret the slope coefficient of Age. The slope coefficient of Age is -676.35, which suggests that for every additional year of age, the predicted price of car decreases by $676.35. The slope coefficient of Age is -0.09, which suggests that for every additional year of age, the predicted price of car decreases by $0.09. The slope coefficient of Age is -676.35, which suggests that for every additional year of age, the predicted price of car decreases by $676.35, holding number of miles constant. The slope coefficient of Age is -0.09, which suggests that for every additional year of age, the predicted price of car decreases by $0.09, holding number of miles constant. c. Predict the selling price of a eight-year-old sedan with 64,000 miles. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.) price = $

Explanation / Answer

(a) Price=22472-676.3508*Age-0.087*Miles

(b) right choice is third,

slope coefficient of Age is -676.35 ....................holding number of miles constant.

(c) age=8 and miles=64000

then price=22472-676.3508*8-0.087*64000=11493.19

follwoing information have been generated using regression analysis

Analysis of Variance Source DF Sum of Mean F Value Pr > F Squares Square Model 2 182556698 91278349 27.93 <.0001 Error 17 55550935 3267702 Corrected Total 19 238107633 Root MSE 1807.68 R-Square 0.7667 Dependent Mean 15069 Adj R-Sq 0.7393 Coeff Var 11.9957 Parameter Estimates Variable DF Parameter Standard t Value Pr > |t| Estimate Error Intercept 1 22472 1070.38724 20.99 <.0001 Age 1 -676.35082 180.8983 -3.74 0.0016 Miles 1 -0.08702 0.02015 -4.32 0.0005

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