Click on the datafile logo to reference the data. DATA (a) Choose a scatter chart below with 'Miles (1000st' as the independent variable. e E (iii) (iv) Whan does the scatter char indicate about the relationship between price and miles? The satter chart indicates there may be a linear relationship between miles and orise. Since a Camry with higher miles will generally sell for a lower price, a relationship is expected between these two varlables. This scatter chart consistent with what is expected. (b) Develop an estimated regression equation showing how price is related to miles. What is the estimated regression model? Let x represent the miles. If required, round your answers to four decimal paces, For subtractive or negative numbers we a minus sign even if there is a * sign before the blark, (Example: -300) 5= (c) Test whether each of the regression parameters 0 and f is equal to zero at a 0.01 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? (i) We can conolude that both 0 and r are equal to zero, where 0 is the estimated change in price in thousands of dollars for a increase of 1,000 miles and p^ is the estimated price in thousands of dollors when the number of miles is zero. The innerpretabon of fod is not reasonable but the interpretation of t is reasonable. (ii) We cannot condude that neither Bonor Al are equal to zero, where fo is the estimated price in thousands of dollars when the number of miles is zero and I is the estimated change in price in thousands of dollars for a increase of 1.000 miles. The interpreation of p is reascnable but the interpretation of t is not reasonable. (iii) We can condlude thas neither 0 nor are equal to zero, where 0 is the estimated price in thousands of dollars when the number of miles is zero and y is the estimated change in price in thousands of dollars for a increase of 1,000 miles. The interpretation of 0 is not reasonable bur the inteepretation of 1 is reasonable. (iv) We can condude than 0=0 but 1=0, where 0 is the estimated change in price in thousands of dollars for a increase of 1,000 miles and 0 is the entimated price in thousands of dollars when the number of miles is zero, Both interpretations are reasonable. (d) How much of the variation in the sample values of price does the model estimated in part (b) explain? If required, round your answer to two decimal places. (e) For the model estimated in part (b), calculate the predicted price and residual for each automobile in the data. Identify the two automobles that were the bigsest bargains. If required, round your answer to the nearest whole number. The best bargain is the Camry a in the data set, which has miles, and sells for 5 less than its predicted price. The second best bargain is the Camry a in the data set, which has miles, and sells for 5 less than its preficted price. (f) Suppose that you are considering purchasing a previously owned Camry that has been driven 50,000 miles. Use the estimuted regression equation developed in part (b) to predict the price for this car. If required, round your arswer to one decimal place. Do not round intermediate calculations. Enter your answer in dollars. For example, 12 thousand should be entered as 12 , 000, Predicted prike: $ is this the price you would offer the selier? Explain. (i) Regardiess of other factors not considered in the model (various optons, the physical condition of the body and intener, etes this is not a reasenable price to expect to pay for a Camry that has been din 50,000 miles miles. (ii) Depending on other factors not considered in the model fuarious options, the physical condeion of the body and inseriof, etc), this is a reasonable price to expect to pay for a Camry that has been driven 50,000 miles miles