Chapter 27, Problem 14E

a)

To determine

To make a scatter plot.

Explanation of Solution

Given:

  

Following is the scatter plot for given data:

  

b)

To determine

To explain whether the given model is linear.

Answer to Problem 14E

Yes.

Explanation of Solution

Given:

  

  

Yes, the given scatter plot shows that pattern is linear. Hence, this data shows the linear model

c)

To determine

To find the regression equation.

Answer to Problem 14E

  $AdvertisedPrice=14285.9482-959.0459age$

Explanation of Solution

Given:

  

  

Using excel,

  

Therefore, the regression equation is,

  $AdvertisedPrice=14285.9482-959.0459age$

d)

To determine

To explain condition using residuals.

Explanation of Solution

Given:

  

Using excel,

  

The residual plot shows that there is no obvious pattern in the scatter plot and the vertical spread appears to remain constant. Therefore, the conditions for inference appear to be met.