# Regression

The owner of Maumee Ford-Mercury 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)

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 selling price on the basis of the age of the car, which variable is the dependent variable and which is the independent variable?

b. Draw a scatter diagram.

c. Determine the coefficient of correlation.

d. Determine the coefficient of determination.

e. Interpret these statistical measures. Does it surprise you that the relationship is inverse?

https://brainmass.com/statistics/regression-analysis/regression-47002

#### Solution Summary

The solution explains the questions in a good amount of detail. It can be easily understood by anyone with a basic understanding of the concepts. The attachment to the solution does a good job of explaining in a very easy to understand way. The word document provides an Excel output with the regression equation. Graphs made in Excel are provided as well. Overall, a good response.