Question

A dealership tracks the correlation between the age of its used cars and asking price for the car. The regression line is y = 12,338 – 930x, where x is the age of the car, in years.

Which statements are true regarding this model? Check all that apply.

For every one year in age, the price is predicted to increase by $930.
For every one year in age, the price is predicted to decrease by $930.
If the car is new, the car is predicted to cost $12,338.
If the age of the car is 1 year, the price is predicted to be $12,338.

Answer 1

Explanation:

The reasonable price of the car after 4 years will be $8618.

What is regression analysis?

Regression analysis is a group of statistical procedures used in statistical modelling to determine the associations between a dependent variable and one or more independent variables.

Given that a dealership tracks the correlation between the age of its used cars and asking price for a car. The regression line is y = 12,338 – 930x, where x is the age of the car, in years.

The price of the car after 4 years will be calculated as follows:-

y = 12338 - 930x

y = 12338 - ( 930 x 4 )

y = 12338 - 3720

y = $8618

Therefore, the reasonable price of the car after 4 years will be $8618.

Answer 2

B - For every one year in age, the price is predicted to decrease by $930

C- If the Car is new, the car is predicted to cost $12,338.

Explanation:

correct on edge 2022