Click on the datafile logo to reference the data The Toyota Camry is one of the...

 

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Click on the datafile logo to reference the data The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends on many factors, including the model year, mileage, and condition. To investigate the relationship between the car's mileage and the sales price for Camrys, the following data show the mileage and sale price for 19 sales (PriceHub web site, February 24, 2012) DATA file Miles (1,000) 22 29 36 47 63 77 73 87 92 101 110 28 59 337932 68 68 42 65 110 Price ($1,000s) 16.2 16.0 13.8 11.5 12.5 12.9 11:2 13.0 11.8 10.8 8.3 12.5 11.1 15.0 12.2 13.0 15.6 12.7 (a) Choose a scatter chart below with Miles (1000s) as the independent variable. 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 places. For subtractive or negative numbers use a minus sign even if there is a sign before the blank (Example: -300) 9 16.504 .060 (c) Test whether each of the regression parameters Bo and Pr is equal to zero at a 001 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? (1) We can conclude that both Bo and B1 are equal to zero, where Bo is the estimated change in price in thousands of dollars for a increase of 1,000 miles and r is the estimated price in thousands of dollars when the number of miles is zero. The interpretation of fo is not reasonable but the interpretation of B1 is reasonable. (ii) We cannot conclude that neither Bonor Brare equal to zero, where Bo is the estimated price in thousands of dollars when the number of miles is zero and Br is the estimated change in price in thousands of dollars for a increase of 1,000 miles. The interpretation of Bo is reasonable but the interpretation of Br is not reasonable. (iii) We can conclude that neither Bo nor 3: are equal to zero, where Bo is the estimated price in thousands of dollars when the number of miles is zero and Br is the estimated change in price in thousands of dollars for a increase of 1,000 miles. The interpretation of Bo is not reasonable but the interpretation of Br is reasonable. (iv) We can conclude that Bo-Obut dollars when the number of miles is Option (ii) O, where Bo is the estimated change in price in thousands of dollars for a increase of 1,000 miles and is the estimated price in thousands of 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. 54.6 (e) For the model estimated in part (b), calculate the predicted price and residual for each automobile in the data identify the two automobiles that were the biggest bargains. if required, round your answer to the nearest whole number. The best bargain is the Camry i in the data set, which has The second best bargain is the Camry in the data set, which has miles, and sells for s miles, and sells for s less than its predicted price. less than its predicted price. (f) Suppose that you are considering purchasing a previously owned Camry that has been driven 60,000 miles. Use the estimated regression equation developed in part (b) to predict the price for this car. If required, round your answer 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 price: $ 11177.8 Is this the price you would offer the seller? Explain (0) Regardless of other factors not considered in the model (various options, the physical condition of the body and interior, etc.), this is not a reasonable price to expect to pay for a Camry that has been driven 60,000 miles miles. (i) Depending on other factors not considered in the model (various options, the physical condition of the body and interior, etc.), this is a reasonable price to expect to pay for a Camry that has been driven 60,000 miles miles. Option (ii) Click on the datafile logo to reference the data The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends on many factors, including the model year, mileage, and condition. To investigate the relationship between the car's mileage and the sales price for Camrys, the following data show the mileage and sale price for 19 sales (PriceHub web site, February 24, 2012) DATA file Miles (1,000) 22 29 36 47 63 77 73 87 92 101 110 28 59 337932 68 68 42 65 110 Price ($1,000s) 16.2 16.0 13.8 11.5 12.5 12.9 11:2 13.0 11.8 10.8 8.3 12.5 11.1 15.0 12.2 13.0 15.6 12.7 (a) Choose a scatter chart below with Miles (1000s) as the independent variable. 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 places. For subtractive or negative numbers use a minus sign even if there is a sign before the blank (Example: -300) 9 16.504 .060 (c) Test whether each of the regression parameters Bo and Pr is equal to zero at a 001 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? (1) We can conclude that both Bo and B1 are equal to zero, where Bo is the estimated change in price in thousands of dollars for a increase of 1,000 miles and r is the estimated price in thousands of dollars when the number of miles is zero. The interpretation of fo is not reasonable but the interpretation of B1 is reasonable. (ii) We cannot conclude that neither Bonor Brare equal to zero, where Bo is the estimated price in thousands of dollars when the number of miles is zero and Br is the estimated change in price in thousands of dollars for a increase of 1,000 miles. The interpretation of Bo is reasonable but the interpretation of Br is not reasonable. (iii) We can conclude that neither Bo nor 3: are equal to zero, where Bo is the estimated price in thousands of dollars when the number of miles is zero and Br is the estimated change in price in thousands of dollars for a increase of 1,000 miles. The interpretation of Bo is not reasonable but the interpretation of Br is reasonable. (iv) We can conclude that Bo-Obut dollars when the number of miles is Option (ii) O, where Bo is the estimated change in price in thousands of dollars for a increase of 1,000 miles and is the estimated price in thousands of 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. 54.6 (e) For the model estimated in part (b), calculate the predicted price and residual for each automobile in the data identify the two automobiles that were the biggest bargains. if required, round your answer to the nearest whole number. The best bargain is the Camry i in the data set, which has The second best bargain is the Camry in the data set, which has miles, and sells for s miles, and sells for s less than its predicted price. less than its predicted price. (f) Suppose that you are considering purchasing a previously owned Camry that has been driven 60,000 miles. Use the estimated regression equation developed in part (b) to predict the price for this car. If required, round your answer 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 price: $ 11177.8 Is this the price you would offer the seller? Explain (0) Regardless of other factors not considered in the model (various options, the physical condition of the body and interior, etc.), this is not a reasonable price to expect to pay for a Camry that has been driven 60,000 miles miles. (i) Depending on other factors not considered in the model (various options, the physical condition of the body and interior, etc.), this is a reasonable price to expect to pay for a Camry that has been driven 60,000 miles miles. Option (ii)

Answer rating: 100% (QA)

a The scatter chart below with Miles 1000s as the independent variable Miles 1000s Price 1000s 22162 29160 3647 138115 12563 77129 73112 87130 92101 1... View the full answer