Question: Refer to Exercise 11.51. Data from in Exercise 11.51 A top Internet site features used cars for sale. The age, x, measured in years and

Refer to Exercise 11.51.

Data from in Exercise 11.51

A top Internet site features used cars for sale. The age, x, measured in years and the price, y, expressed in thousands of dollars were recorded from a sample of listings for a popular midsize foreign car.

Age Price Age Price 1 20 4 15 2 18 2 17

(a) From the fitted regression line, determine the predicted value for the average selling price of a 5-year-old car and construct a 95% confidence interval.
(b) Determine the predicted value for a 5-year-old car to be listed on the site next week. Construct a 90% prediction interval.
(c) Is it justifiable to predict the selling price of a 15-year old car from the fitted regression line? Give reasons for your answer.

Age Price Age Price 1 20 4 15 2 18 2 17 5 6 14 16 3 19 6 12 4 16 7 13

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