In: Math
We consider a population of cars from a given model year. A sample of 24 such cars
has been recently sold. The sale price as a function of the age of the car is in the Excel
file S4.XLSX (Car) in the Excel directory.
a. Try a linear regression and an exponential (non-linear) regression with Excel to
fit these data. Comment your results.
b. Which regression model seems to fit the data better and why?
c. Run the LINEST function in Excel. Provide the result table.
Car sale price | |
Age (year) | Price ($) |
1 | 119400 |
3 | 73200 |
5 | 51000 |
2 | 91800 |
8 | 36600 |
2 | 102000 |
3 | 73800 |
1 | 120600 |
6 | 42600 |
7 | 39600 |
4 | 61800 |
8 | 31200 |
5 | 48600 |
1 | 126000 |
5 | 52800 |
3 | 70200 |
6 | 43200 |
6 | 53400 |
7 | 40800 |
4 | 63400 |
7 | 36000 |
8 | 33000 |
4 | 64800 |
2 | 93000 |