Sporty cars are designed to provide better handling, acceleration, and a more responsive driving experience than a typical sedan. But, even within this select group of cars, performance as well as price can vary. Consumer Reports provided road-test scores and prices for the following 12 sporty cars (Consumer Reports website, October 2008). Prices are in thousands of dollars and road-test scores are based on a 0-100 rating scale, with higher values indicating better performance.

a. Develop a scatter diagram with price as the independent variable.
b. What does the scatter diagram developed in part (a) indicate about the relationship between the two variables?
c. Use the least squares method to develop the estimated regression equation.
d. Provide an interpretation for the slope of the estimated regression equation.
e. Another sporty car that Consumer Reports tested is the BMW 135i; the price for this car was $36,700. Predict the road-test score for the BMW 135i using the estimated regression equation developed in part (c).

Transcribed Image Text:

Car Price ($1000s) Chevrolet Cobalt SS Dodge Caliber SRT4 Ford Mustang GT (V8) Honda Civic Si Mazda RX-8 Mini Cooper S Mitsubishi Lancer Evolution GSR Nissan Sentra SE-R Spec v Suburu Impreza WRX Suburu Impreza WRX Sti Volkswagen GTI Volkswagen R32 24.5 24.9 29.0 21.7 31.3 26.4 38.1 23.3 Road-Test Score 78 56 73 78 86 74 83 37.6 24.0 33.6 81 89 83 83