Question

The owner of Maumee Ford-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. Determine the correlation coefficient. Interpret the correlation coefficient. Answer: correlation type, please write one word and correlation strength, please write one word

Answer 1

-0.5436

Fairly strong negative correlation

Value of car decreases as age increases.

Step-by-step explanation:

Age of car(x)

9

7

11

12

8

7

8

11

10

12

6

6

Selling price ($)

8.1

6.0

3.6

4.0

5.0

10.0

7.6

8.0

8.0

6.0

8.6

8.0

The correlation Coefficient calculated using the correlation coefficient calculator is - 0.5436. This depicts a fairly strong negative (negative value in Coefficient value) correlation exists between the age of a car and its value. This means that, the value of a car decreases as age increases.