## State the linear regression equation, Engineering Mathematics

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An auto manufacturing company wanted to investigate how the price of one of its car models depreciates with age. The research department at the company took a sample of eight cars of this model and collected the following information on the ages (in years) and prices (in hundreds of dollars) of these cars.

 Age (x) 8 3 6 9 2 5 6 3 Price (y) 16 74 40 19 124 36 33 89

a) Set up a scatter diagram for age and price.

b) At the 0.05 level of significance, determine whether there is a significant linear relationship between age and price.

c) State the linear regression equation.

d) Predict the average price obtained when the age of the car is 7 years old.

e) Determine the coefficient of determination, r2, and interpret its meaning.

f) How useful do you think this regression model is for predicting price?

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