Used BMW prices. A business student needs cash, so he decides to sell his car. The car is a valuable BMW 840 that was only made over the course of a few years in the late 1990s. He would like to sell it on his own, rather than through a dealer so he’d like to predict the price he’ll get for his car’s model year.

a) Make a scatterplot for the data on used BMW 840s provided.

b) Describe the association between year and price.

c) Do you think a linear model is appropriate?

d) Computer software says that What is the correlation between year and price?

e) Explain the meaning of in this context.

f) Why doesn’t this model explain 100% of the variability in the price of a used BMW 840?