The relationship between the selling price (in dollars)of used Ford Escorts and their age (in years)is analyzed.A regression analysis to predict the price from the age gives the model $\hat{\text { price }} = 14,210 - 1348$ age.You want to sell a 17-year-old Escort.Use the model to determine an appropriate price.Explain any problems.
A)-$22,916 You won't sell a car for a negative amount.The model doesn't give meaningful prices for Escorts this old.
B)$11 The car should be worth more than this.
C)-$37,126 There are no problems with this prediction.
D)$22,916 There is no way the car is worth this much.
E)-$8706 You won't sell a car for a negative amount.The model doesn't give meaningful prices for Escorts this old.

Question

Quizplus · Accepted Answer

The model equation given is: price = 11(age) - 9518. When age = 17, we can plug it into the equation: price = 11(17) - 9518 = $8695. Therefore, the appropriate price for a 17-year-old Escort is $8695 according to the model. However, the model may not be reliable for predicting prices for Escorts that are too old, as the relationship between age and price may not be linear anymore. Additionally, the model may not account for other factors that affect the price of a used car, such as its condition, location, and demand.

The Relationship Between the Selling Price (In Dollars)of Used Ford price ^=14,210−1348\hat{\text { price }} = 14,210 - 1348 price ^​=14,210−1348

The Relationship Between the Selling Price (In Dollars)of Used Ford $\hat{\text { price }} = 14,210 - 1348$