(d) How much of the variation in the sample values of price does the model estimated in part (b) explain? If required, round your answer to two decimal places. % (e) For the model estimated in part (b), calculate the predicted price and residual for each automobile in the data. Identify the two automobiles that were the biggest bargains. If required, round your answer to the nearest whole number. The best bargain is the Camry # in the data set, which has miles, and sells for $ less than its predicted price. The second best bargain is the Camry # in the data set, which has miles, and sells for $ less than its predicted price. (f) Suppose that you are considering purchasing a previously owned Camry that has been driven 90,000 miles. Use the estimated regression equation developed in part (b) to predict the price for this car. If required, round your answer to one decimal place. Do not round intermediate calculations. Predicted price: $
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends on many factors, including the model year, mileage, and condition. To investigate the relationship between the car’s mileage and the sales price for Camrys, the following data show the mileage and sale price for 19 sales (PriceHub web site, February 24, 2012).
| (d) | How much of the variation in the sample values of price does the model estimated in part (b) explain? |
| If required, round your answer to two decimal places. | |
| % | |
| (e) | For the model estimated in part (b), calculate the predicted price and residual for each automobile in the data. Identify the two automobiles that were the biggest bargains. |
| If required, round your answer to the nearest whole number. | |
|
The best bargain is the Camry # in the data set, which has miles, and sells for $ less than its predicted price. The second best bargain is the Camry # in the data set, which has miles, and sells for $ less than its predicted price. |
|
| (f) | Suppose that you are considering purchasing a previously owned Camry that has been driven 90,000 miles. Use the estimated regression equation developed in part (b) to predict the price for this car. |
| If required, round your answer to one decimal place. Do not round intermediate calculations. | |
| Predicted price: $ |
| Miles (1,000s) | Price ($1,000s) | ||||
| 22 | 16.2 | ||||
| 29 | 16.0 | ||||
| 36 | 13.8 | ||||
| 47 | 11.5 | ||||
| 63 | 12.5 | ||||
| 77 | 12.9 | ||||
| 73 | 11.2 | ||||
| 87 | 13.0 | ||||
| 92 | 11.8 | ||||
| 101 | 10.8 | ||||
| 110 | 8.3 | ||||
| 28 | 12.5 | ||||
| 59 | 11.1 | ||||
| 68 | 15.0 | ||||
| 68 | 12.2 | ||||
| 91 | 13.0 | ||||
| 42 | 15.6 | ||||
| 65 | 12.7 | ||||
| 110 | 8.3 |
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