The file P13_60.XLS contains data on the price of new and used Taurus sedans. All prices for used cars are from 1995. For example, a new Taurus bought in 1985 cost $11,790 and t wholesale used price of that car in 1995 was $1700. A new Taurus bought in 1994 cost $18,680 and it could be sold used in 1995 for $12,600.

a. You want to predict the resale value (as a percentage of the original price of the vehicle) as a function of the vehicle’s age. Find an equation to do this. (You should try at least two different equations and choose the one with the best fit.)

b. Suppose all police cars are Ford Tauruses. If you were the business manager for the New York Police Department, what use would you make of your findings from part a?