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    Scatter diagram, regression

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    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?

    © BrainMass Inc. brainmass.com October 9, 2019, 5:49 pm ad1c9bdddf
    https://brainmass.com/statistics/regression-analysis/scatter-diagram-regression-coefficient-determination-68843

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    Solution Summary

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

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