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    Calculate, test, and interpret the relationship between two variables using the correlation coefficient

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    The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.

    Car Age (years) Selling Price ($000) Car Age (years) Selling Price ($000)
    1 12 10.3 7 12 8.0
    2 10 9.2 8 16 7.8
    3 15 4.6 9 14 7.8
    4 18 4.2 10 18 4.3
    5 12 5.1 11 8 10.0
    6 10 11.6 12 8 8.8

    (a) Determine the regression equation. (Round your answers to 3 decimal places. Negative values should be indicated by a minus sign.)
    a =
    b =

    (b) Estimate the selling price of a 13-year-old car (in $000). (Round your answer to 3 decimal places.)
    Selling price =

    (c) Interpret the regression equation (in dollars). (Round your answer to nearest dollar amount.)
    For each additional year, the car decreases $_____ in value.

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    https://brainmass.com/statistics/correlation/interpret-relationship-between-two-variables-517587

    Solution Preview

    Hi there,

    Thanks for letting me work on your post. Here is my explanation:

    mean of years (x) = (12+10+...+8)/12= 12.75
    mean of ...

    Solution Summary

    The expert interprets the relationship between two variables.

    $2.19