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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.

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

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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.

    $2.19

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