9
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 9 • Probability and Statistics with Applications Honors Sem-1-FL-1210300 (2024-2025)

A statistics student is studying if there is a relationship between the price of a used car and the number of miles it has been driven. She collects data for 20 cars of the same model with different mileage, and determines each car’s price using a used car website. The analysis is given in the computer output.PredictorCoefSE Coeft-ratiopConstant24157.22164.12.9650.046Mileage-0.1810.0245.3770.000S = 3860.7R-Sq = 68.0%R-Sq(Adj) = 67.5%

Answer
A
ŷ = –0.181 + 24157.2x
B
ŷ = 24157.2 – 0.181x
C
ŷ = 2164.1 + 0.024x
D
ŷ = 0.024 + 2164.1x

Explanation

In a linear regression equation, the constant is the y-intercept and the coefficient of Mileage is the slope. The output gives a constant of 24157.2 and a Mileage coefficient of −0.181, so the prediction equation is ŷ = 24157.2 − 0.181x. Choice B matches; the negative slope means the predicted price decreases as mileage increases.

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