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    Scatter diagrams and coefficients of correlation and determination

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    A car dealership wants to study the relationship between the age of a car and the selling price. Below is a sample of 12 cars:

    Car Age(years) Selling Price ($000)
    1 9 8.1
    2 7 6
    3 11 3.6
    4 12 4
    5 8 5
    6 7 10
    7 8 7.6
    8 11 8
    9 10 8
    10 12 6
    11 6 8.6
    12 6 8

    A. If we want to estimate the selling price on the basis of age, which variable is the dependent and which is the independent?
    B. Draw a scatter diagram.
    C. Determine the coefficient of correlation.
    D. Determine the coefficient of determination.
    E. Interpret the measures. Does it surprise you that the relationship is inverse?

    © BrainMass Inc. brainmass.com September 28, 2022, 9:59 pm ad1c9bdddf
    https://brainmass.com/statistics/analysis-of-variance/scatter-diagrams-coefficients-correlation-determination-61096

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    Car dealership wants to study the relationship between the age of a car and the selling price. Below is a sample of 12 cars:

    Car Age(years)X Selling Price ($000) Y
    1 9 8.1
    2 7 6
    3 11 3.6
    4 12 4
    5 8 5
    6 7 10
    7 8 7.6
    8 11 ...

    Solution Summary

    This solution involves drawing a scatter diagram, determining coefficients of correlation and determination, and interpreting the measures.

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