In: Statistics and Probability
An auto manufacturing company wanted to investigate how the
price of one of its car models...
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An auto manufacturing company wanted to investigate how the
price of one of its car models depreciates with age. The research
department at the company took a sample of eight cars of this model
and collected the following information on the ages (in years) and
prices (in hundreds of dollars) of these cars.
| Age |
4 |
4 |
3 |
2 |
4 |
2 |
7 |
5 |
| Price |
70 |
62 |
78 |
75 |
54 |
72 |
42 |
44 |
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Find the least squares regression line equation in the form
y^=a+bx. Use "Age" as the independent variable and "Price" as the
dependent variable.
Round your answers to four decimal places.
y^=+()x
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Predict the price of a 5 year-old car of this model.
Round your answer to one decimal place.
ypred=
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