Used cars 2010 Vehix.com offered several used ToyotaCorollas for sale. The following table displays the ages ofthe cars and the advertised prices. a) Make a scatterplot for these data.b) Do you think a linear model is appropriate? Explain.c) Find the equation of the regression line. d) Check the residuals to see if the conditions for infer-ence are met. Age (yr) Price ($) Age (yr) Price ($)1 15988 6 99951 13988 6 119882 14488 7 89903 10995 8 94883 13998 8 89954 13622 9 59904 12810 10 41005 9988 12 2995
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Used cars 2010 Vehix.com offered several used Toyota
Corollas for sale. The following table displays the ages of
the cars and the advertised prices.
b) Do you think a linear model is appropriate? Explain.
c) Find the equation of the regression line.
ence are met.
1 15988 6 9995
1 13988 6 11988
2 14488 7 8990
3 10995 8 9488
3 13998 8 8995
4 13622 9 5990
4 12810 10 4100
5 9988 12 2995
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