The manager of a used-car dealership is very interested in the resale price of used cars. The

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The manager of a used-car dealership is very interested in the resale price of used cars. The manager feels that the age of the car is important in determining the resale value. He collects data on the value of the car (in thousands of dollars) as the dependent variable and the age of the car (in years) as the independent variable.

Age Value (Thousands of €)

3 50 5 43 7 35 8 40 11 15

a. Compute the covariance.

b. Compute the correlation coefficient.

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