The selling price of a used car is inversely(or negatively) related to the age of the car. That is, as the age increases, the selling price tends to decrease. The following table shows data for 10 cars of a certain make and model :
Selling Price (In Dollars) Age (In years)
(Y) (X)
980 5
1760 3
1100 5
600 8
2100 2
1600 3
1400 4
710 7
800 6
1800 3

a) Plot the data
b) Find the equation of the sample regression line and graph it
c) Estimate the selling price of a 4-year old car.

Solution Summary

This solution plots a data set and finds the regression equation

Find the following:
(a) Compute the sampleregression coefficients bo and b1.
(b) Compute the estimated variance of the regression.
(c) Compute the standard error of the regression.
(d) Compute the estimated variance of b1.
(e) Compute the standard error of b1.
Year y = book value per share x = earning per share
1980

Simple Linear Regression and Multiple Regression.
I'd like to ask whether you think multiple regression (the use of more IV's) is always better than simple regression? Why or why not?
What problems may exist with multiple regression that are not an issue for simple linear regression?

In a regression model, if every sample point is on the
regression line (all errors are 0), then
a. the correlation coefficient would be 0.
b. the correlation coefficient would be -1 or 1.
c. the coefficient of determination would be -1.
d. the coefficient of determination would be 0.

5. A sample survey of boat owners in southeast Florida has yielded the following data on boat costs and buyer income. (See Excel attachment for data and solution)
a. Compute with statistical software a linear regression of Y on X. How do you interpret the results?
b. Interpret the coefficient of correlation squared.

1. The least squares regression line given above is said to be a line which "best fits" the sample data. The term "best fits" is used because the line has an equation that minimizes the ______, which for these data is______.
2. For the data point (225.3, 308.1), the value of the residual is_____. (Round your answer to at le

The following sample observations were randomly selected:
X: 5 3 6 3 4 4 6 8
Y: 13 15 7 12 13 11 9 5
a. Determine the regression equation.
b. Determine the value of Y when X is 7.

In a multiple regression equation two independent variables are considered, and the sample size is 25. The regression coefficients and the standard errors are as follows.
b1= 2.677 sb1= 0.56
b2= -0.880 sb2= 0.71
Conduct a test of hypothesis to determine whether either independent variable has a coeffic

The general form of a regression equation with a single independent variable is.....
Given a one sample z test, if the critical value of z is 2.58 and the computed value is 2.48, it indicates that hte difference between the sample and population values are.....

The following sample observations were randomly selected...See attached file for full problem description.
1. The following sample observations were randomly selected.
X: 4 5 3 6 10
Y: 7 6.2 5.8 9.4 12.2
(a) The regression equation, given to two decimal places, is
+
(b) When is