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The data shown in the following scatterplot and simple regression report the price and the number of miles driven for 218 used cars (all in
The data shown in the following scatterplot and simple regression report the price and the number of miles driven for 218 used cars (all in the BMW 325 series) offered for sale in the Philadelphia region. 0 10000 30000 500 00 70000 Mileage Price ($) = 37586.264 0.23028 Mileage Question 1: According to the fitted equation, a car like these with 25,000 miles would be expected to cost on average approximately a) $31,829. b) $34,132. c) $37,586. d) $5,757. e) None of the above. Question 2: If two cars were selected at random from this population and one had been driven 30,000 miles, whereas the other had recorded 40,000 miles, then what would you expect the approximate price difference to be? a) The less driven car would be expected to be $23,000 cheaper. b) The less driven car would be expected to be $23,000 more expensive. c) The less driven car would be expected to be $0.23 cheaper. d) The less driven car would be expected to be $2,300 more expensive. e) They would both be the same price because they were selected at random
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