Millions of boats are registered in the United States. As is the case with automobiles, there is an active used-boat market. Many of the boats purchased require bank financing, and, as a result, it is important for financial institutions to be capable of accurately estimating the price of boats.
One variable that affects the price is the number of hours the engine has been run. To determine the effect of the hours on the price, a financial analyst recorded the price (in $1,000s) of a sample of 2007 24-foot Sea Ray cruisers (one of the most popular boats) and the number of hours they had been run. Determine the least squares line and explain what the coefficients tell you.

  • CreatedFebruary 03, 2015
  • Files Included
Post your question