The owner of Maumee Ford-Mercury wants to study relationship between the age of car and it's selling price. Listed below is random sample of 12 employed cars sold at the dealership throughout 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 |
6.0 |
8 |
11 |
8.0 |
3 |
11 |
3.6 |
9 |
10 |
8.0 |
4 |
12 |
4.0 |
10 |
12 |
6.0 |
5 |
8 |
5.0 |
11 |
6 |
8.6 |
6 |
7 |
10.0 |
12 |
6 |
8.0 |
- If we want to estimate selling price on basis of the age of the car, which variable is dependent variable and which is the independent variable?
- Draw scatter diagram.
- Find out the correlation of coefficient.
- Find out the correlation of determination.
- Interpret these statistics. Does it surprise you that relationship is inverse?