Refer to Exercise 11.57.
(a) From the fitted regression line, determine the predicted value for the average selling price of a 5-year-old car and construct a 95% confidence interval.
(b) Determine the predicted value for a 5-year-old car to be listed on the site next week. Construct a 90% prediction interval.
(c) Is it justifiable to predict the selling price of a 15-year-old car from the fitted regression line? Give reasons for your answer.
Exercise 11.57
A top Internet site features used cars for sale. The age, x, measured in years and the price, y, expressed in thousands of dollars was recorded from a sample of listings for a popular midsize foreign car.

(a) Plot the scatter diagram.
(b) Determine the equation of the least squares regression line and draw this line on the scatter diagram.
(c) Construct a 95% confidence interval for the slope of the regression line.

Transcribed Image Text:

Age 2 334 Price 27.9 23.0 21.6 209 20.0 Age 5 5667 Price 18.5 176 17.0 15.5 9.5