The following data list ages of cars (in years) and monthly repair cost in dollars. What is standard error of the estimate?
$\begin{array} { c c } \text { Age } & \text { Cost } \ 3 & 25 \ 5 & 35 \ 7 & 55 \ 9 & 50 \ 11 & 75 \ 14 & 85 \end{array}$
A) 6.36
B) 8.75
C) 7.34
D) 5.49

Question

Quizplus · Accepted Answer

The standard error of the estimate is calculated using the formula: $SE = \sqrt{\frac{\sum (y_i - \hat{y}_i)^2}{n-2}}$, where $y_i$ are the observed values, $\hat{y}_i$ are the predicted values from the regression line, and $n$ is the number of data points. After calculating the regression line and the residuals, the standard error of the estimate is approximately 6.36.

The Following Data List Ages of Cars (In Years) and Monthly