# Non-linear regression

The following data are selling prices z of a certain make and model of used cars w years old: (see table below)

a) Fit a curve of the form z = cd^w by means of the nonlinear sample regression equation z = cd^w. Hint: use logarithmic transformations.

b) Is d significantly different from 1 at the 0.05 significance level?

Data:

w z

1 6350

2 5695

2 5750

3 5395

5 4985

5 4895

See attached file for full problem description.

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#### Solution Preview

I did this in SPSS, but you can do the same analysis with any program that can do a linear regression.

First I put the data into 2 columns (just like in the table above). Then I made another column that was made up of the logarithms of the values in the z ...

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