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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
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?
basic properties on the inverse of laplace transform
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