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Car dealership wants to study the relationship between the age of a car and the selling price. Below is a sample of 12 cars:
Car Age(years) Selling Price ($000)
1 9 8.1
2 7 6
3 11 3.6
4 12 4
5 8 5
6 7 10
7 8 7.6
8 11 8
9 10 8
10 12 6
11 6 8.6
12 6 8
A- If we want to estimate the selling price on the basis of age, which variable is the dependent and which is the independent?
B- Draw a scatter diagram.
C- Determine the coefficient of correlation.
D- Determine the coeffiecient of determination.
E- Interpet the measures. Does it suprise you that the relationship is inverse?
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See if there is a difference in their means and variances.
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