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?
See attached file for full problem description.
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 ...