Subaru Costs Data Collected from Internet Ads for 1999 Subarus $\hat{r}$

question 94

Essay

Subaru costs Data collected from internet ads for 1999 Subarus were used to create a model to estimate
the asking price of the car based on the number of miles it had been driven. The model has
$\hat{r}$ =0.47
and equation $\hat{\text{ Price}}$ = 15,327 - 0.11(Miles). The plot of residuals versus the predicted price is
shown.
a. Do you think you could make accurate estimates of Subaru prices with this model? Explain.
b. Interpret the slope of the line.
c. One of the cars in the data set had been driven 42,000 miles. How much was the owner
asking for it? (Show work.)

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Definitions:

Peripheral-Route Cues

Aspects of a message that are not directly related to the content but can influence an individual's attitude change, such as the attractiveness of the speaker.

Central Route Processing

A method of persuasion that involves deeply processing the content of a message, focusing on the arguments and evidence presented.

Low Self-Monitoring

A trait characterized by a consistent behavior across different situations due to a disregard for social cues or expectations.

Primacy Effect

The tendency to remember and give more importance to information that is encountered first in a list or series, as opposed to information that appears later.