Question
Prob 5) Suppose we are interested in using Simple Linear Regression Analysis to build a model to predict the price of cars. The following data
Prob 5)Suppose we are interested in using Simple Linear Regression Analysis to build a model to predict the price of cars. The following data represent a random sample of 5 Honda Civic cars:
Price of Car ($Thousands) | Age of Car (Year) |
28 | 1 |
25 | 2 |
19 | 6 |
11 | 10 |
17 | 6 |
a)Show a scatter for the above data set. Do you detect any type of relationship between the Price of car and Age of Car?
b)Find the Y-Intercept and Slope of your simple linear regression model. Also, interpret their meanings in the context of the above problem.
c)Use your result in part (b) to predict the price of a Honda Civic which has been used for 30 months. Also, predict the price of a new Honda Civic car.
d)Find the Coefficient of Determination (R-square) and interpret its meaning.
e)Find the Coefficient of Correlation (R) for your regression model and interpret its meaning.
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