Question

The following data includes the year, make, model, mileage (in thousands of miles) and asking price (in US dollars) for each of 13 used Honda Odyssey minivans. The data was collected from the Web site.
year make model mileage price
2004 Honda Odyssey EXL 20 26900
2004 Honda Odyssey EX 21 23000
2002 Honda Odyssey 33 17500
2002 Honda Odyssey 41 18999
2001 Honda Odyssey EX 43 17200
2001 Honda Odyssey EX 67 18995
2000 Honda Odyssey LX 46 13900

Required:
Compute the correlation between age (in years) and price for these minivans.

Answer 1

Find complete data below :

Answer:

R = - 0.94

Step-by-step explanation:

Since data was collected in 2005 ; we subtract the data collection year from the make year to obtain the age :

Age (x) :

1,1, 3,3,4,4,5,5,5,5,6,7,10

Price (y) :

26900,23000,17500,18999,17200,18995,13900,15250,13200,11000,13900,8350,5800

Using technology, the correlation Coefficient between age of car and price is : - 0.94

With a correlation Coefficient of - 0.94, we can conclude that there exists a strong negative correlation between age and price of the Odyssey mini vans. This could be interpreted to mean that ; As the age of cars in increases, the price decreases