Question

The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends upon many factors, including the model year, mileage, and condition. To investigate the relationship between the car's mileage and the sales price for a model year Camry, the following data show the mileage and sale price for sales (PriceHub website). Click on the datafile logo to reference the data.

Miles (1000s) Price ($1000s)
22 16.2
29 16.0
36 13.8
47 11.5
63 12.5
77 12.9
73 11.2
87 13.0
92 11.8
101 10.8
110 8.3
28 12.5
59 11.1
68 15.0
68 12.2
91 13.0
42 15.6
65 12.7
110 8.3

QUESTION: Provide an interpretation for the slope of the estimated regression equation (to decimals but dollar value to the nearest cent). Enter negative values as negative numbers.

The slope of the estimated regression is ____. Therefore, every additional 1,000 miles on the car's odometer will result in a $___ decrease in the predicted price.

decrease
in the predicted price.

Answer 1

The estimated regression equation for the relationship between the mileage and sales price of a Toyota Camry is given by:

y = 16.469 - 0.0587x

where "y" represents the sales price in thousands of dollars and "x" represents the mileage in thousands of miles . The slope of the estimated regression equation is -0.0587. Therefore, every additional 1,000 miles on the car's odometer will result in a **$58.70** decrease in the predicted price .