# Scatter diagram, regression

See the attached file.

The owner of Maumee Ford-Mercury wants to study the relation 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) car age (years) selling price ($000)

1 9 8.1 7 8 7.6

2 7 6.0 8 11 8.0

3 11 3.6 9 10 8.0

4 12 4.0 10 12 6.0

5 8 5.0 11 6 8.6

6 7 10.0 12 6 8.0

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 determination.

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

https://brainmass.com/statistics/regression-analysis/scatter-diagram-regression-coefficient-determination-68843

#### Solution Summary

This solution shows a scatter diagram of the data provided, conducts a regression analysis, and finds the coefficient of determination.