The cost of a previously owned car depends upon factors such as make and model, model year, mileage, condition, and whether the car is purchased from a dealer or from a private seller. To investigate the relationship between the car’s mileage and the sales price, data were collected on the mileage and the sale price for 10 private sales of model year 2000 Honda Accords (PriceHub website, October 2008).

a. Develop a scatter diagram with miles as the independent variable.

b. What does the scatter diagram developed in part

(a) indicate about the relationship between the two variables?

c. Use the least squares method to develop the estimated regression equation.

d. Provide an interpretation for the slope of the estimated regression equation.

e. Predict the sales price for a 2000 Honda Accord with 100,000 miles.