Answer Happy

4. The data file "Cars" contains a random sample of used cars for which the odometer reading (in thousands of miles) and the sales price (in thousands of dollars) have been recorded. This data file was used in class and appears on Canvas in the “Correlation and Simple Linear Regression" module. (a) Estimate a simple linear regression model (again) in which price is the dependent variable and odometer is the independent variable. Write down the estimated regression equation. (b) Russell has two vehicles, a blue car and a yellow car. The yellow car has 15,000 more miles on its odometer than does the car. Using your estimated regression equation, how many (more/fewer) dollars should he expect to be able to get for the yellow car on the used car market relative to what he should expect to get for the blue car? Round your answer to the nearest dollar. (c) Suzanne's car has 50,000 miles on the odometer, and she claims that she can get at least $15,000 for it on the used car market. Is this a plausible claim considering your regression results? Support your response with statistical reasoning. Use a 5% level of significance.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Odometer1000 37.4 44.8 45.8 30.9 31.7 34.0 45.9 19.1 40.1 40.2 32.4 43.5 32.7 34.5 37.7 41.4 24.5 35.8 48.6 24.2 38.8 45.6 28.7 38.2 36.7 32.5 39.1 45.3 34.4 38.4 32.2 26.6 33.5 41.8 36.7 37.5 25.6 40.1 31.0 42.2 37.4 34.4 30.6 42.5 38.4 40.5 26.0 Price 1000 14.6 14.1 14.0 15.6 15.6 14.7 14.5 15.7 15.1 14.8 15.2 14.7 15.6 15.6 14.6 14.6 15.7 15.0 14.7 15.4 14.3 14.5 15.6 14.7 14.4 15.1 14.1 14.2 14.8 15.1 15.0 15.7 14.6 14.5 14.8 14.6 15.7 15.0 14.9 14.4 14.2 15.4 15.6 14.4 14.3 14.3 15.5
49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 46.3 34.8 27.4 47.9 35.6 42.5 43.8 43.5 34.3 41.4 35.0 41.4 30.2 47.2 24.5 21.2 35.5 28.0 38.1 42.3 49.2 33.4 37.8 36.0 38.1 35.2 21.0 45.8 36.2 34.4 44.3 32.1 34.6 31.0 38.6 36.5 25.7 39.2 21.5 37.1 42.6 33.0 31.6 36.0 29.1 38.2 31.5 31.4 13.9 14.5 15.5 14.3 15.0 14.5 14.5 14.3 14.5 14.6 14.8 14.2 15.3 14.3 16.1 15.4 15.1 15.0 14.4 14.5 14.0 14.7 14.1 15.2 15.3 14.6 16.4 14.4 14.9 15.0 13.6 15.4 14.9 14.7 14.3 15.1 15.1 14.2 16.3 14.6 14.3 14.8 15.5 15.0 15.4 14.6 15.5 15.1
95 96 97 98 99 100 101 31.5 31.4 36.2 34.2 33.2 39.2 36.4 15.5 15.1 14.8 14.6 14.5 14.7 14.3