The owner of Maumee Ford-Volvo wants to study the relationshipbetween the age of a car and its selling price. Listed below is arandom sample of 12 used cars sold at the dealership during thelast year.
| Car | | Age (years) | | Selling Price($000) |
| 1 | | | | 11 | | | | 12.2 | |
| 2 | | | | 8 | | | | 11.0 | |
| 3 | | | | 16 | | | | 4.9 | |
| 4 | | | | 18 | | | | 4.1 | |
| 5 | | | | 9 | | | | 6.7 | |
| 6 | | | | 8 | | | | 13.6 | |
| 7 | | | | 10 | | | | 11.1 | |
| 8 | | | | 16 | | | | 9.0 | |
| 9 | | | | 14 | | | | 9.0 | |
| 10 | | | | 18 | | | | 4.2 | |
| 11 | | | | 6 | | | | 12.1 | |
| 12 | | | | 6 | | | | 10.4 | |
1. Determine the regression equation. (Negative amountsshould be indicated by a minus sign. Round your answers to 3decimal places.)
|
| a = | |
| b = | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â |
2. Estimate the selling price of an 7-year-old car (in $000).(Round your answer to 3 decimal places.)
| Selling price | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â |
3. Interpret the regression equation (in dollars).(Round your answer to the nearest dollaramount.)
| For each additional year, the cardecreases | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â | in value. |
