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# Regression Analysis

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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.

https://brainmass.com/statistics/regression-analysis/regression-analysis-195344

#### 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.

\$2.49