Emily Smith decides to buy a fuel-efficient used car. Here are several vehicles she is considering, with the estimated cost to purchase and the age of the vehicle.

a. Plot these data on a scatter diagram with estimated cost as the dependent variable.
b. Find the correlation coefficient.
c. A regression analysis was performed and the resulting regression equation is Estimated Cost 5 18358 2 1534 Age. Interpret the meaning of the slope.
d. Estimate the cost of a five-year-old car.
e. Here is a portion of the regression software output. What does it tell you?

f. Using the .10 significance level, test the significance of the slope. Interpret the result. Is there a significant relationship between the twovariables?

Transcribed Image Text:

Vehicle Estimated Cost $5,555 S17,888 $9,963 $6,793 $10,774 $16,310 $2,475 $2,808 $7,073 $8,978 $11,213 $9,463 $15,055 S20,705 Age Honda Insight Toyota Prius Toyota Prius Toyota Echo Honda Civic Hybrid Honda Civic Hybrid Chevrolet Prizm Mazda Protege Toyota Corolla Acura Integra Scion xB Scion xA Mazda3 Mini Cooper 10 Predictor Constant Age Coef 18358 1533.6 SE Coef 1817 10.10 306.3-5.01 0.000 0.000