Using Advertised Prices for Used Ford Escorts a Linear Model

question 29

Multiple Choice

Using advertised prices for used Ford Escorts a linear model for the relationship between a car's age and its price is found.The regression has an
= 85.8%.Why doesn't the model explain 100% of the variation in the price of an Escort?

• A)The model was calculated incorrectly.It should explain all the variation in price.
• B)The model is only right 85.8% of the time.
• C)14.2% of the time the buyer is getting ripped off by an unscrupulous seller.
• D)The prices of all used Ford Escorts were not used.
• E)There are other factors besides age that affect the price.These include things such as mileage,options,and condition of the car.

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Definitions:

Smartphone

Phone with features of a computer including a wide assortment of apps, media players, high-quality cameras, and web connectivity.

Uber

A platform and service that connects passengers with drivers for hire via a mobile app, often considered a pioneer in the ride-sharing industry.

Debit Card

A payment card that deducts money directly from a consumer’s checking account to pay for a purchase.

Credit Card

A plastic card issued by financial institutions that allows individuals to borrow funds at the point of sale, subject to repayment terms.