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wrote...
Posts: 210
2 weeks ago
Subaru costs Data collected from internet ads for 1999 Subarus were used to create a model to estimate
the asking price of the car based on the number of miles it had been driven. The model has r2 = 0.47
and equation = 15,327 - 0.11(Miles). The plot of residuals versus the predicted price is shown.



a. Do you think you could make accurate estimates of Subaru prices with this model? Explain.
b. Interpret the slope of the line.
c. One of the cars in the data set had been driven 42,000 miles. How much was the owner asking for it? (Show work.)
Textbook 

Stats: Modeling the World


Edition: 4th
Authors:
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wrote...
Posts: 241
2 weeks ago
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a. Using the model, mileage explains only 47% of the variability in price and some of the residuals are nearly $2000. Estimates of price will be only moderately accurate.
b. Slope = -0.11; The model predicts that for every additional mile the car had been driven
the price of the car would decrease $0.11, on average.
c. = 15,327 - 0.11(42,000) = 15,327 - 4620 = $10,707
Residual at $10,707 from residual plot: $1000
Asking price = predicted price plus residual = $10,707 + $1000 = $11,707
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wrote...
2 weeks ago
Thanks for your help!
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