The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year. Car Age (years) Selling Price ($1000) Car Age (years) Selling Price ($1000)1 9 12.0 7 9 8.92 8 10.9 8 11 9.73 10 4.6 9 10 9.74 12 4.3 10 12 2.75 9 5.6 11 6 10.66 8 13.5 12 6 8.9(a) Determine the regression equation. (Round your answers to 3 decimal places. Negative values should be indicated by a minus sign.)(b) Estimate the selling price of a 12-year-old car (in $1000). (Round your answer to 3 decimal places.)(c) Interpret the regression equation (in dollars). (Round your answer to nearest dollar amount.)

a)

Nowe we can find the means for x and y like this:

And we can find the intercept using this:

So the line would be given by:

b) For this case we can replace in the lineal model the value of x =12 and we got:

c) For this case we can conclude that every increase in the age of the car decrease the selling price in about 1.0328*1000= 1032.8$ dollars from the original price.  

Explanation:

a) Regression equation.  

X represent the age an Y the Selling price

For this case we need to calculate the slope with the following formula:

Where:

So we can find the sums like this:

With these we can find the sums:

And the slope would be:

Nowe we can find the means for x and y like this:

And we can find the intercept using this:

So the line would be given by:

Part b

For this case we can replace in the lineal model the value of x =12 and we got:

Part c

For this case we can conclude that every increase in the age of the car decrease the selling price in about 1.0328*1000= 1032.8$ dollars from the original price.  

b, fewer problems later! good luck