Asked by Alyssa Davis on Jul 17, 2024
Verified
The relationship between the selling price (in dollars) of used Ford Escorts and their age (in years) is analyzed.A regression analysis to predict the price from the age gives the model price ^=14,210−1348\hat{\text { price }} = 14,210 - 1348 price ^=14,210−1348 age.You want to sell a 17-year-old Escort.Use the model to determine an appropriate price.Explain any problems.
A) -$22,916 You won't sell a car for a negative amount.The model doesn't give meaningful prices for Escorts this old.
B) $11 The car should be worth more than this.
C) -$37,126 There are no problems with this prediction.
D) $22,916 There is no way the car is worth this much.
E) -$8706 You won't sell a car for a negative amount.The model doesn't give meaningful prices for Escorts this old.
Selling Price
The final amount of money charged for a product or service, representing the cost to the buyer under conditions of sale.
Regression Analysis
Regression analysis is a statistical method used for estimating the relationships among variables, particularly the relationship between a dependent variable and one or more independent variables.
Negative Amount
A value less than zero, indicating a deficit or loss in a numeric context.
- Achieve insight into the basic understanding of linear regression, concentrating on the application of a regression equation to predict values.
- Judge the adequacy of a linear model for particular data sets.
Verified Answer
Learning Objectives
- Achieve insight into the basic understanding of linear regression, concentrating on the application of a regression equation to predict values.
- Judge the adequacy of a linear model for particular data sets.
Related questions
Ten Ford Escort Classified Ads Were Selected A) \(\hat{\text { price ...
The Relationship Between the Number of Games Won During One \(\hat{\text ...
A Golf Ball Is Dropped from 15 Different Heights (In \(\hat{\text ...
Let X Be the Weight (In Tons) of a Load ...
The Symbol for the Population Coefficient of Correlation Is