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Data on the ages and prices of a sample of nissan z cars obtained from the asian import edition of the auto trader magazine. Instructions to create a scatterplot, find the least squares regression line, make predictions based on the regression line for cars that are 6 and 12 years old, interpret the vertical intercept and slope of the regression line, find the correlation, and interpret the value of r-squared.
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The following are data on age and price for a sample of Nissan Z’s. The data were obtained from the Asian Import edition of the Auto Trader magazine. Ages are in years; prices are in hundreds of dollars, rounded to the nearest hundred dollars.
Car Age Price($100s)
1 5 85 2 4 103 3^6 4 5 82 5^5 6 5 98 7 6 66 8 6 95 9 2 169 10 7 70 11 7 48
a. Make a scatterplot of these data and describe it below.
b. Find the least squares regression line.
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c. Predict the value of this type of car that is 6 years old.
d. Predict the value of this type of car that is 12 years old.
e. Consider the two predictions in parts c and d. Which one is an example of extrapolation and why?
f. Interpret what the vertical intercept of the regression line means.
g. Interpret what the slope of the regression line means.
h. Find the correlation. Interpret it.
i. What is the value of r-squared and interpret it in a sentence.