Corvette, Ferrari, and Jaguar produced a variety of classic cars that continue to increase in value. The following data, based upon the Martin Rating System for Collectible Cars, show the rarity rating (1-20) and the high price ($1000) for 15 classic cars (BusinessWeek website, February 2006).

a. Develop a scatter diagram of the data using the rarity rating as the independent variable and price as the independent variable. Does a simple linear regression model appear to be appropriate?
b. Develop an estimated multiple regression equation with x = rarity rating and x2 as the two independent variables.
c. Consider the nonlinear relationship shown by equation (16.7). Use logarithms to develop an estimated regression equation for this model.
d. Do you prefer the estimated regression equation developed in part (b) or part (c)? Explain.

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Year Rating Price ($1000) 18 1956 Chevrolet Corvette 265/225-hp 1963 Chevrole Corvette coupe (340-bhp 4-speed) 8 1978 Chevrolet Corvette coupe Silver Anniversary 19 250 GTE 2+2 1962-1964 Ferari 275 GTB/4 NART Spyder aytona 1962-1967 Jaguar E-type OTS 1969-1971 Jaguar E-type Series II OTS 77.5 1951-1954 Jaguar XK 120 roadster (steel) 1