Answered: The accompanying data file shows the…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

The accompanying data file shows the price, the age, and the mileage for 20 used sedans.

Price	Age	Mileage
13590	6	61485
13775	6	54344
22991	1	8246
15303	4	24856
16388	3	22100
16600	3	23702
16987	4	47401
18489	2	16888
18859	3	35380
19857	3	29634
11877	9	55792
14989	3	46183
15900	3	37009
16500	4	45521
9440	9	86902
12988	5	77241
15777	6	59647
10490	9	93241
8938	10	48221
11988	8	42408

1. Estimate the sample regression equation that enables us to predict the price of a sedan on the basis of its age and mileage.

Note: Negative values should be indicated by a minus sign. Round your answers to 2 decimal places. [If you are using R to obtain the output, then first enter the following command at the prompt: options(scipen=10). This will ensure that the output is not in scientific notation.]

2. Interpret the slope coefficient of Age.

A. The slope coefficient of Age is −0.03, which suggests that for every additional year of age, the predicted price of car decreases by $0.03.

B. The slope coefficient of Age is −1021.82, which suggests that for every additional year of age, the predicted price of car decreases by $1021.82.

C. The slope coefficient of Age is −1021.82, which suggests that for every additional year of age, the predicted price of car decreases by $1021.82, holding number of miles constant.

D. The slope coefficient of Age is −0.03, which suggests that for every additional year of age, the predicted price of car decreases by $0.03, holding number of miles constant.

3. Predict the price of a five-year-old sedan with 65,000 miles.

Note: Do not round intermediate calculations. Round final answer to 2 decimal places.

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