Question

On October 17, 2007, the classified ads on the web site of The Seattle Times listed the following 13 used Toyota Prius automobiles for sale; the data set below shows the year, color, mileage (in miles) and asking price (in U.S. dollars) for each car:

year     color      mileage     price
2006     green        17043     25995
2007     gray         12628     24980
2005     maroon       24039     24885
2005     silver       48226     23995
2006     black        10522     22995
2004     silver       66345     21995
2007     white         5611     21995
2005     gold         24479     21595
2004     white        14618     20995
2005     silver       53699     20980
2004     silver       47649     17995
2003     white        39600     17500
2005     black       103126     16995

We wish to investigate a possible association between the mileageof each Prius and its price. You should construct a scatterplot of this data.

assume that a linear model is appropriate, regardless of your answer to the previous question.

1. Find the equation of the regression line for this data that predicts price based upon mileage:

2. Use the model to predict the asking price of a Toyota Prius with 450,000 miles, or explain why such a prediction is not appropriate:

3. Use the model to predict the asking price of a Toyota Prius with 45,000 miles, or explain why such a prediction is not appropriate:

4. Compute the residual for the green Prius:

Answer 1