Question
Use the advertised prices for used cars of a particular model in the accompanying table to create a linear model for a relationship between a
Use the advertised prices for used cars of a particular model in the accompanying table to create a linear model for a relationship between a car's age and its price. Complete parts A through G. Show working.(A) Find the equation of the line of regression. Show working.(B) Explain the meaning of the slope of the line. Show working (C) Explain the meaning of the y-intercept of the line. Show working. (D) If you want to sell a 9- year old car of this model, what price seems appropriate? Show working (E) do you have a chance to buy one or two cars. They are about the same age and appear to be in equally good condition. Would you rather buy the one with a positive residual or one with a negative residuals? Explain. (F) You see a "For Sale" sign on a 15-year old car of this model stating the asking price as $6,100. What is the residual? Show working.(G) Would this regression model be useful in establishing a fair price for a 23-year-old car? Explain.
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