Using Advertised Prices for Used Ford Escorts a Linear Model $\mathrm { R } ^ { 2 }$

question 27

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 $\mathrm { R } ^ { 2 }$ = 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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