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    Emily Smith decides to buy a fuel-efficient used car

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    Emily Smith decides to buy a fuel-efficient used car. Here are several vehicles she is considering, with the estimated cost to purchase and the age of the vehicle.

    Vehicle Est. Cost Age
    Honda insight $5,555 8
    toyota prius $17,888 3
    toyota prius $9,963 6
    toyota echo $6,793 5
    honda civic hybrid $10,774 5
    honda civic hybrid $16,310 2
    chevrolet prizm $2,475 8
    mazda protege $2,808 10
    toyota corolla $7,073 9
    acura integra $8,978 8
    scion xB $11,213 2
    scion xA $9,463 3
    mazda 3 $15,055 2
    mini cooper $22,705 2

    (a) Plot these data on a scatter diagram with estimated cost as the dependent variable.

    (b) Find the correlation coefficient.

    (c) A regression analysis was performed and the resulting regression equation is Estimated
    Cost = 18358 = 1534 Age. Interpret the meaning of the slope.

    (d) Estimate the cost of a five-year-old car.

    (e) Here is a portion of the regression software output. What does it tell you?

    Predictor Coef SE Coef T P
    Constant 18358 1817 10.10 0.000
    Age -1533.6 306.3 -5.01 0.000

    (f) Using the 0.10 significance level, test the significance of the slope. Interpret the result. Is there
    a significant between the two variables?

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    Plot these data on a scatter diagram with estimated cost as the dependent variable.
    The scatter plot is given as follows:

    Find the correlation coefficient.
    The correlation coefficient is -0.8077.
    A regression analysis was performed and the resulting regression equation is Estimated
    Cost = 18358 - 1534 Age. Interpret the meaning of the slope.
    As the age of the car increases by 1 year, the estimated ...

    Solution Summary

    The solution consists of detailed analysis of the given problem.

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