An economist uses regression analysis to determine the relationship between used car price (y) and the age of a car (x). The analysis resulted in the following equation: Ý – 30,000 - 500"X The above equation implies that an increase of O 1 year in the age of the car is associated with an increase of $500 in the price of the car 1 year in the age of the car is associated with a decrease in $500 in the price of the car O$500 in the price of the car is associated with an increase of 5 years in the age of the car 5 years in the age of the car is associated with a decrease of $100 in the price of the car

An economist uses regression analysis to determine the relationship between used car price (y) and the age of a car (x). The analysis resulted in the following equation: Ý – 30,000 - 500"X The above equation implies that an increase of O 1 year in the age of the car is associated with an increase of $500 in the price of the car 1 year in the age of the car is associated with a decrease in $500 in the price of the car O$500 in the price of the car is associated with an increase of 5 years in the age of the car 5 years in the age of the car is associated with a decrease of $100 in the price of the car

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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