Solution Found!
Depreciation The following data represent the price of a
Chapter 4, Problem 13RE(choose chapter or problem)
Problem 13RE
Depreciation The following data represent the price of a random sample of used Chevy Camaros, by age
Age,x(years) |
Price,y(dollars) |
Age,x(years) |
Price, y(dollars) |
2 |
15,900 |
1 |
20,365 |
5 |
10,998 |
2 |
16,463 |
2 |
16,980 |
6 |
10,824 |
5 |
9,995 |
1 |
19,995 |
4 |
11,995 |
1 |
18,650 |
5 |
10,995 |
4 |
10,488 |
(a) Draw a scatter diagram treating the age of the car as the explanatory variable and price as the response variable.
(b) Find the correlation coefficient between age and price. Based on the correlation coefficient, is there a linear relation between age and price?
(c) Find the least-squares regression line treating age as the explanatory variable.
(d) Plot the residuals against the age of the car.
(e) Do you think that a linear model is appropriate for describing the relation between the age of the car and price? Why?
Questions & Answers
QUESTION:
Problem 13RE
Depreciation The following data represent the price of a random sample of used Chevy Camaros, by age
Age,x(years) |
Price,y(dollars) |
Age,x(years) |
Price, y(dollars) |
2 |
15,900 |
1 |
20,365 |
5 |
10,998 |
2 |
16,463 |
2 |
16,980 |
6 |
10,824 |
5 |
9,995 |
1 |
19,995 |
4 |
11,995 |
1 |
18,650 |
5 |
10,995 |
4 |
10,488 |
(a) Draw a scatter diagram treating the age of the car as the explanatory variable and price as the response variable.
(b) Find the correlation coefficient between age and price. Based on the correlation coefficient, is there a linear relation between age and price?
(c) Find the least-squares regression line treating age as the explanatory variable.
(d) Plot the residuals against the age of the car.
(e) Do you think that a linear model is appropriate for describing the relation between the age of the car and price? Why?
ANSWER:
Answer
Step 1 of 5
(a)
The following data represent the price of a random sample of used Chevy Camaros, by age.
Age,x(years) |
Price,y(dollars) |
Age,x(years) |
Price, y(dollars) |
2 |
15,900 |
1 |
20,365 |
5 |
10,998 |
2 |
16,463 |
2 |
16,980 |
6 |
10,824 |
5 |
9,995 |
1 |
19,995 |
4 |
11,995 |
1 |
18,650 |
5 |
10,995 |
4 |
10,488 |
We are asked to draw a scatter diagram treating the age of the car as the explanatory variable and price as the response variable.
The following plot represents the scatter diagram between the variables.
