Question

A statistics student is studying if there is a relationship between the price of a used car and the number of miles it has been driven. She collects data for 20 cars of the same model with different mileage, and determines each car’s price using a used car website. The analysis is given in the computer output. Predictor Coef SE Coef t-ratio p Constant 24157.2 2164.1 2.965 0.046 Mileage -0.181 0.024 5.377 0.000 S = 3860.7 R-Sq = 68.0% R-Sq(Adj) = 67.5% Using the computer output, what is the equation of the least-squares regression line?

Answer 1

Answer:

y = - 0.181x + 24157.2

Step-by-step explanation:

Equation of the regression line is given from. The table by the Coefficient of the predictor, x variable and the intercept value :

The predictor here is mileage, which has a Coefficient of - 0.181

The constant value = intercept 24157.2

The regression equation is written in the form :

y = mx + c ; m = slope = Coefficient of predictor, ; x = predictor,

Hence, we have :

y = - 0.181x + 24157.2