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.

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.)

Predict the selling price of a eight-year-old sedan with 63,000 miles. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)

The accompanying table shows a portion of data consisting of the selling price, the age, and the mileage for 20 used sedans.

Explanation / Answer

Regression Analysis: Selling Price versus Age, Miles

The regression equation is
Selling Price = 21817 - 684 Age - 0.0748 Miles

Predictor Coef SE Coef T P
Constant 21817 1063 20.52 0.000
Age -684.0 206.8 -3.31 0.004
Miles -0.07483 0.02357 -3.18 0.006

S = 1917.87 R-Sq = 74.0% R-Sq(adj) = 71.0%

Analysis of Variance

Source DF SS MS F P
Regression 2 178060553 89030277 24.20 0.000
Residual Error 17 62529700 3678218
Total 19 240590253

b.

The slope coefficient of Age is 683.95, which suggests that for every additional year of age, the predicted price of car decreases by $683.95, holding number of miles constant.

c.

Selling Price = 21817 - 684 *8 - 0.0748 *63000 =

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