A car dealer wants to estimate the price of a used car based on the age of the car and the mileage. Based on a sample of 20 cars, she determines the sample regression equation that predicts price taxes on the basis of the age (in years) of the number of miles is Price=21,619-1022Age-0.03 Miles (a) If the age of the car was fixed and the mileage was increased by 10,000, how much would the price increase or decrease and by how much? (b) Predict the selling price of a five-year-old car with 65,000 miles. (Round your answers to the nearest whole number.)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
A car dealer wants to estimate the price of a used car based on the age of the car and the mileage. Based on a sample of 20 cars, she determines the sample regression equation that predicts price taxes on the basis of the age (in years) of the number of miles is
Price=21,619-1022Age-0.03 Miles
(a) If the age of the car was fixed and the mileage was increased by 10,000, how much would the price increase or decrease and by how much?
(b) Predict the selling price of a five-year-old car with 65,000 miles. (Round your answers to the nearest whole number.)
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