The owner of Maumee FordMercuryVolvo wants to study the rela

The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.

Determine the regression equation. (Round your answers to 3 decimal places. Negative values should be indicated by a minus sign.)

Estimate the selling price of a 13-year-old car (in $000). (Round your answer to 3 decimal places.)

Interpret the regression equation (in dollars). (Round your answer to nearest dollar amount.)

Solution

a = 13.606

b = - 0.513

b.

Selling price = 13.606 - 0.513*13 = 6.937 thousand = $6937

c.

$513