Question

This Question: 1 pt 11 of 11 ( complete This Test: 11 pts possit tic: Question Help Folowing are age and price data for randomly selected ambulances between 1 and 6 years old. Here, denotes ago, in years, and y denotos prio, in hundreds of dolars. Use the information to complete parts (a) through x 6 1 6 2. 6 2 4 5 Y 270 390 275 300280 365 315 300 a. Find the regression equation for the data points (Round to two decimal places as needed) b. Graph the regression equation and the data points ОА. B Ос OD Q so 50 Price tut A e. Describe the apparent relationship between the two variables O A Price tends to increase as age increases OB Price remains contents age increase C. Price tends to decrease as age increases Thermaltainen Click to select your owwers) 31 MacBook Pro Q Search or type URL 2 3 4 % 5 6 & 7 8 9 ) 0 W E R T Y U o P S D F G H J K L V C V B N M * ind

Answer 1

a)

X: Age

Y: Price

Computational Table:

	X	Y	X2	Y2	XY
	6	270	36	72900	1620
	1	390	1	152100	390
	6	275	36	75625	1650
	2	360	4	129600	720
	6	280	36	78400	1680
	2	355	4	126025	710
	4	315	16	99225	1260
	5	300	25	90000	1500
Total	32	2545	158	823875	9530

32 ΣΧι X 4 η 8

$\bar{Y} = \frac{\sum Yi}{n} = \frac{2545}{8} = 318.125$

For Slope:

e- ηΣΧΥ (ΣΧ)(ΣΥ) ηΣΧ2 - (ΣΧ)2

$b = \frac{8*9530 - (32)(2545)}{8*158 - (32)^2}$

b = -21.66

For Intercept:

q=Y - 6.X

a = 318.125 - (-21.66 * 4)

a = 404.79

Therefore, the least square regression line would be,

Ý = a+b(X)

Y
= 404.79 - 21.67 (X)

b)

ANSWER: B

450 400 350 300 250 Price (Y) 200 150 100 50 0+ 0 1 2 3 4 5 6 7 Age (X)

C)

ANSWER: C

C. Price tends to decrease as age increases.

d)

ANSWER: A

A. The predictor variable is Age and the response variable is price.

e)

ANSWER: C

C. There are no outliers and no influential observations.

f)

The least square regression line would be,

Ý = a+b(X)

Y
= 404.79 - 21.67 (X)

For X = 3 year

Y
= 404.79 - 21.67*3

Y
= $339.79