Stat questions The price (in $1000) of used cars depends, among other factors, on the cars odometer reading (how far a car has been driven) in 1000 miles). The file Usedcars.xlsx contain the price and odometer readings of a sample of used cars as well as the color of each car coded as 1 = white, 2 = black, and 3 = silver.

(a) What do you expect the relationship between the price and odometer readings?

(b) Plot price v. odometer readings. Is what you see from the plot consistent with your above expectation?

(c) Plot the price v. color. Explain what you see in the plot.

(d) Compute the least squares line when the price is regressed on odometer readings and interpret the coefficient.

(e) What is the standard error of the estimates?

(f) Is there a statistically significant evidence that price and odometer readings are lin- early related?

(g) Construct a 94% confidence interval for 1.

(h) What proportion of the variability in the price that can be explained by odometer readings?

(i) Briefly summarize what you have learned from the analysis of this data.