Question

The Cadet is a popular model of sport utility vehicle, known for its relatively high resale value. The bivariate data given below were taken from a sample of fifteen Cadets, each bought new two years ago, and each sold used within the past month. For each Cadet in the sample, we have listed both the mileage (in thousands of miles) that the Cadet had on its odometer at the time it was sold used and the pricey (in thousands of dollars) at which the Cadet was sold used. With the aim of predicting the used selling price from the number of miles driven, we might examine the least-squares regression line, 9 - 41.79-0.49x . This line is shown in the scatter plot in Figure 1. Used selling Mileage, x price, y (in thousands) thousands of dollars) 26.5 31.2 24.6 30.4 10+ 23.3 31.8 21.0 30.7 35 20.7 31.1 28.0 30.2 VO 27.7 26.5 15 37.6 22.8 24.0 27.6 20 23.7 28.5 25.7 25.8 15 20 25 30 35 40 15.6 34.5 Figure 1 29.2 27.5 23.3 33.1 34.4 25.2 Send data to Excel Using the above information, answer the following: Choose one greater than less than 1. Fill in the blank: For these data, mileages that are less than the mean of the mileages tend to be paired with used selling prices that are the mean of the used selling prices 2. Fill in the blank: According to the regression equation, for an increase of one thousand miles in Cadet mileage, there is a corresponding of 0.49 thousand dollars in the used selling price. 3. What was the observed used selling price (in thousands of dollars) when the mileage was 37.6 thousand miles? Choose one 0

Answer 1

1)

since slope is downward

.........that are greater than mean of the used selling prices,

2)

Corresponding decrease of 0.49 thousand dollars ..

3)

observed value =22.8 thousand of dollars

4)

predicted value =41.79-0.49*37.6 =23.37