Use the advertised prices for BMW 850s given in Exercise 63 to create a linear model for the relationship between a car’s Model Year and its Price.
a) Find the equation of the regression line.
b) Explain the meaning of the slope of the line.
c) Explain the meaning of the intercept of the line.
d) If you wanted to sell a 1997 BMW 850, what price seems appropriate?
e) You have a chance to buy one of two cars. They are about the same age and appear to be in equally good condition. Would you rather buy the one with a positive residual or the one with a negative residual? Explain.