Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The accompanying table shows a portion of dots consisting of the price, the age, and the mileage for 20 used sedans. Price Age Mileage 13558

image text in transcribedimage text in transcribed
image text in transcribedimage text in transcribed
The accompanying table shows a portion of dots consisting of the price, the age, and the mileage for 20 used sedans. Price Age Mileage 13558 4 61466 SELET 11987 42378 Click here for the Excel Doto File a. Determine the sample regression equation that enables us to predict the price of a sedan on the basis of its age and mileage. (Negative values should be Indicated by a minus sign. Round your answers to 2 decimal places.) [If you are using R to obtain the output, then first enter the following command at the prompt: options(scipen=10). This will ensure that the output is not In scientific notation.] Price = Age +F Miles b. Interpret the slope coefficient of Age. The slope coefficient of Age is -676.35, which suggests that for every additional year of age, the predicted price of car decreases by $676.35. The slope coefficient of Age is -0.09, which suggests that for every additional year of age, the predicted price of car decreases by $0.09. The slope coefficient of Age is -676.35, which suggests that for every additional year of age, the predicted price of car decreases by $676.35, holding number of miles constant The slope coefficient of Age is -0.09, which suggests that for every additional year of age, the predicted price of car decreases by $0.09, holding number of miles constant. c. Predict the selling price of a eight-year-old sedan with 64,000 miles. (Do not round Intermediate calculations. Round final answer to 2 decimal places.) PricePrice Age Mileage 13550 4 61466 13775 7 54389 22919 2 8257 15275 4 24840 16366 7 22060 16601 3 23656 16961 7 47443 18457 3 16875 18820 2 35373 19811 1 29661 11839 9 55840 14903 7 46197 15880 4 37014 16530 45513 9450 6 86927 12988 6 77266 15761 5 59699 10547 6 93226 8967 48290 11987 9 42370

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and managerial accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

1st edition

111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114

Students also viewed these Mathematics questions

Question

Explain the typical entrepreneurs attitude toward risk.

Answered: 1 week ago