(Solved): The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Ca ...

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).

Miles (1,000s)		Price ($1,000s)
	22		16.2
	29		16.0
	36		13.8
	47		11.5
	63		12.5
	77		12.9
	73		11.2
	87		13.0
	92		11.8
	101		10.8
	110		8.3
	28		12.5
	59		11.1
	68		15.0
	68		12.2
	91		13.0
	42		15.6
	65		12.7
	110		8.3

(a)	Choose a scatter chart below with ‘Miles (1000s)’ as the independent variable.

The scatter chart indicates there may be a positive/negative linear relationship between miles and price. Since a Camry with higher miles will generally sell for a lower price, a negative relationship is expected between these two variables. This scatter chart is 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 places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)

= ______+______x

(c) Test whether each of the regression parameters ?₀ and ?₁ 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?

(d) How much of the variation in the sample values of price does the model estimate in part (b)? 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 automobiles that were the biggest bargains.

If required, round your answer to the nearest whole number.

The best bargain is the Camry #______ in the data set, which has _____ miles, and sells for $______ less than its predicted price.

The second best bargain is the Camry #_____ in the data set, which has _____ miles, and sells for $_____ less than its predicted price.

(f) Suppose that you are considering purchasing a previously owned Camry that has been driven 80,000 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.

Predicted price: $_______

Is this the price you would offer the seller? Yes/No

The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Cal depends on many factors, including the model year, mileage, and condition. To investigate the relation between the car's mileage and the sales price for Camrys, the following data show the mileage and sa for 19 sales (PriceHub web site, February 24, 2012). DATA $$\sqrt{\text{ file }}$$ (a) Choose a scatter chart below with 'Miles (1000s)' as the independent variable. (iv)