Question: Corvette Ferrari and Jaguar produced a variety of classic cars

Corvette, Ferrari, and Jaguar produced a variety of classic cars that continue to increase in value. The following data, based upon the Martin Rating System for Collectible Cars, show the rarity rating (1-20) and the high price ($1000) for 15 classic cars (BusinessWeek website, February 2006).
a. Develop a scatter diagram of the data using the rarity rating as the independent variable and price as the independent variable. Does a simple linear regression model appear to be appropriate?
b. Develop an estimated multiple regression equation with x = rarity rating and x2 as the two independent variables.
c. Consider the nonlinear relationship shown by equation (16.7). Use logarithms to develop an estimated regression equation for this model.
d. Do you prefer the estimated regression equation developed in part (b) or part (c)? Explain.

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