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). A. Develop an estimated regression equation showing how price is related to miles. What is the estimated regression model? Let x represent the miles. B. calculate the predicted price and residual for each automobile in the data. Identify the two automobiles that were the biggest bargains C. Suppose that you are considering purchasing a previously owned Camry that has been driven 40,000 miles. Use the estimated regression equation developed in part (A) to predict the price for this car.
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).
A. Develop an estimated regression equation showing how price is related to miles. What is the estimated regression model? Let x represent the miles.
B. calculate the predicted price and residual for each automobile in the data. Identify the two automobiles that were the biggest bargains
C. Suppose that you are considering purchasing a previously owned Camry that has been driven 40,000 miles. Use the estimated regression equation developed in part (A) to predict the price for this car.
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