# Regression Analysis

Please see attached.

Thanks kindly!

1. (10) After seeing Trevor's catchy ad, Davy Jones wants to buy a car from him. Use the data from the Trevor Car Lot problem and process it by the Regression program in Excel.

Car # Price of Car Age of Car (in yrs.)

1 $14, 750 2

2 $ 6, 770 6

3 $12, 115 3

4 $17,825 2

5 $ 8,500 5

6 $ 7,000 4

7 $10,250 2

8 $13,450 2

9 $ 9,895 3

10 $ 8,000 4

11 $10,125 1

12 $16,500 1

13 $ 5,500 4

14 $ 6,850 3

15 $ 15,000 2

(a) (5) Paste your printout here, or attach it to this assignment.

(b) (5) Write the regression equation. Use it to find the predicted price of a three-year-old car that Mr. Jones wants to buy.

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#### Solution Preview

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Solution

a) Let y denote the price of the car in $ and x denote the age of the car. Assume that x and y are linearly related. Let y = a+bx be the suggested linear relationship.

We can find the least square estimates of the intercept a and slope b in the simple linear ...

#### Solution Summary

The solution discusses the fitting of a simple linear regression model to a given set of data using MS Excel and prediction of the dependent variable for a given value of the independent variable.