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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