Question: A business student needs cash so he decides to sell

A business student needs cash, so he decides to sell his car. The car is a valuable BMW 850CSi that was only made over the course of a few years in the 1990s. He would like to sell it on his own, rather than through a dealer so he’d like to predict the price he’ll get for his car’s model year.
a) Make a scatterplot for the data on used BMW 850SCi’s provided.
b) Describe the association between year and price.
c) Do you think a linear model is appropriate?
d) Computer software says that R2 = 57.3%. What is the correlation between year and price?
e) Explain the meaning of R2 in this context.
f) Why doesn’t this model explain 100% of the variability in the price of a used BMW 850CSi?

Sale on SolutionInn
  • CreatedMay 14, 2015
  • Files Included
Post your question