Sruti Singh is shopping for a used Volkswagen Golf and feels that there is a relationship between the mileage and market value of the car. The following table provides data on previous car sales from the local area:

(a) Develop a simple regression model to predict the market value of a Volkswagen Golf based on its mileage.
(b) What percentage of the market value variation is explained by the mileage variable?
(c) Sruti has found a car with 46,700 miles. Construct a 95% confidence interval for the market value of this car.

Transcribed Image Text:

CAR MILEAGE MARKET VALUE AGE (YEARS) I 1,600 35,000 42,700 54,500 58,200 66,800 73,100 77,500 85,700 $14,200 $14,000 $10,500 9,300 $12,800 $10,900 9,500 7,900 S 6,200 7,500 10