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The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends on many factors, including the
The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends on many factors, including the model year, mileage, and condition. To investigate the relationship between the cars mileage and the sales price for Camrys, the following data show the mileage and sale price for 19 sales (PriceHub web site, February 24, 2012).
Miles (1,000s) Price ($1,000s) 16.2 16.0 WNNW oin in co 12.5 11.1 15.0 13.0 15.6 12.7 (e) For the model estimated in part (b), calculate the predicted price and residual for each automobile in the data. Identify the two automobiles that were the biggest bargains. If required, round your answer to the nearest whole number. The best bargain is the Camry # 12 in the data set, which has 28000 miles, and sells for $ 12500 less than its predicted price. The second best bargain is the Camry # 4 in the data set, which has 47000 miles, and sells for $ 11500 less than its predicted price. (f) Suppose that you are considering purchasing a previously owned Camry that has been driven 80,000 miles. Use the estimated regression equation developed in part (b) to predict the price for this car If required, round your answer to one decimal place. Do not round intermediate calculations. Predicted price: $ 11800 Miles (1,000s) Price ($1,000s) 16.2 16.0 WNNW oin in co 12.5 11.1 15.0 13.0 15.6 12.7 (e) For the model estimated in part (b), calculate the predicted price and residual for each automobile in the data. Identify the two automobiles that were the biggest bargains. If required, round your answer to the nearest whole number. The best bargain is the Camry # 12 in the data set, which has 28000 miles, and sells for $ 12500 less than its predicted price. The second best bargain is the Camry # 4 in the data set, which has 47000 miles, and sells for $ 11500 less than its predicted price. (f) Suppose that you are considering purchasing a previously owned Camry that has been driven 80,000 miles. Use the estimated regression equation developed in part (b) to predict the price for this car If required, round your answer to one decimal place. Do not round intermediate calculations. Predicted price: $ 11800Step by Step Solution
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