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
Chapter1: Introducing The Economic Way Of Thinking
Section1.A: Applying Graphs To Economics
Problem 2SQP
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![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:
Y = 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
O 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb1437bd-f76f-4969-beb3-cce63ec3634a%2Fab773819-81a3-437f-972d-e500edd18a86%2Fh9m6py_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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:
Y = 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
O 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
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