Reference no: EM131008916
Used Saab prices
A linear model to predict the Price of a 2004 Saab 9-3 (in $) from its Mileage (in miles) was fit to 38 cars that were available during the week of January 11, 2008 (Kelly's Blue Book, www.kbb.com). The model was:
Price = 24,356.15 - 0.0151 Mileage.
a) What is the explanatory variable?
b) What is the response variable?
c) What does the slope mean in this context?
d) What does the y-intercept mean in this context? Is it meaningful?
e) What do you predict the price to be for a car with 100,000 miles on it?
f) If the price for a car with 100,000 miles on it was $24,000, what would the residual be?
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: A linear model to predict the Price of a 2004 Saab 9-3 (in $) from its Mileage (in miles) was fit to 38 cars that were available during the week of January 11, 2008 (Kelly's Blue Book, www.kbb.com). The model was:
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