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The owner of Maumee Ford-Mercury wants to study the relationship between the age of a car and its se

Question: The owner of Maumee Ford-Mercury 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 ($000)	Car	Age (years)	Selling Price ($000)
1	9	8.1	7	8	7.6
2	7	6	8	11	8
3	11	3.6	9	10	8
4	12	4	10	12	6
5	8	5	11	6	8.6
6	7	10	12	6	8

A. If we want to estimate selling price on the basis of the age of the car, which variable is the dependent variable and which is the independent variable?

B. Draw a scatter diagram.

C. Determine the coefficient of correlation.

D. Determine the coefficient of determination.

E. Interpret these statistical measures. Does it surprise you that the relationship is inverse?

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Solution: The solution consists of 2 pages
Type of Deliverable: Word Document