Question

Following are age and price data for 10 randomly selected cars between 1 and 6 years old.​ Here, x denotes​ age, in​ years, and y denotes​ price, in hundreds of dollars. Use the information to complete parts​ (a) through​ (g).

x	6	6	6	2	2	5	4	5	1	4
y	280	290	295	425	379	315	355	333	420	325

a. Find the regression equation for the data points.

y=__+(__)x

Answer 1

Regression Equation is y=a+bx

Where

'a' indicates the value of y when x=0. It is called y-intercept

'b' indicates the slope of the regression line and gives a measure of change of 'y' for a unit change in 'x'

n : Number of pairs of observations = 10

	x	y	xy	x2
	6	280	1680	36
	6	290	1740	36
	6	295	1770	36
	2	425	850	4
	2	379	758	4
	5	315	1575	25
	4	355	1420	16
	5	333	1665	25
	1	420	420	1
	4	325	1300	16
Total	=41	=3417	=13178	=199

b = -26.9159

a = 452.0552

The regression equation for the data points.

y=452.0552+(-26.9159)x