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 sixteen 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 price y (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, 42.25-0.51x. This line is shown in the scatter plot in Figure1 23.9 31.0 30.3 20.7 23.7 28.8 28.2 29.5 4.8 15.9 Figure 1 27.7 26.3 Using the above information, answer the following . Fill in the blank: For these data, ssed selling prices that are greater than the mean of the used seling prices tend to be paired with mileages that are the mean of the mileages 2. According to the regression equation, for an increase of one thousand miles in Cadet mileage, there is a corresponding decrease of how many thousand dollars in the used selling price? 3. From the regression equation, what is the predicted used selling price (in thousands of dallars) when the mileage is 16.0 thousand miles? (Round your answer to at least one decimal place) 4. From the regression equation, what is the predicted used selling price (in thousands of dollars) when the mileage is 21.0 thousand miles? (Round your answer to at least one decimal place.) Using the above information, answer the following 1. Fal in the biank: For these data, used selling prices hat are greaner Done Choose one greater than less than

Answer 1

1)

less than

2)corresponding decrease =0.51

3)

predicted used selling price=42.25-0.51*18=33.07

4)

predicted used selling price=42.25-0.51*21=31.54