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The Honda Accord was named the best midsized car for resale value for 2018 by the Kelley Blue Book (Kelley Blue Book website). The file AutoResale contains mileage, age, and selling price for a sample of 33 Honda Accords.

**Price:** 16998, 17599, 15998, 15998, 11599, 13998, 14998, 11599, 12599, 14998, 15998, 11599, 10499, 14599, 10599, 16998, 20998, 11599, 12599, 13599, 11599, 9599, 18998, 12599, 12599, 10998, 11998, 12998, 17599, 9998, 9998, 16998, 17599

**Mileage:** 35000, 16000, 42000, 61000, 102000, 109000, 60000, 88000, 58000, 27000, 32000, 95000, 123000, 54000, 68000, 40000, 7000, 81000, 70000, 86000, 92000, 120000, 20000, 63000, 70000, 88000, 86000, 60000, 45000, 96000, 60000, 36000, 45000

**Age:** 3, 3, 3, 4, 7, 4, 5, 9, 8, 6, 4, 8, 8, 5, 11, 4, 1, 9, 6, 5, 7, 10, 2, 7, 6, 10, 6, 6, 2, 11, 11, 2, 2

The estimated regression equation is:

\[ \text{Selling price} = 20385.25049 - 0.03739 \times \text{Mileage} - 686.33668 \times \text{Age} \]

Round your answers to the nearest dollar.

**a.** Estimate the selling price of a four-year-old Honda Accord with mileage of 40,000 miles.

**b.** Develop a 95% confidence interval for the selling price of a car with the data in part (a).

**c.** Develop a 95% prediction interval for the selling price of a car with the data in part (a).

Answer :

A four-year-old Honda Accord with 40,000 kilometres on it is being sold for $16144.32.

What is the going rate for a Honda Accord that is four years old?

According to Kelley Blue Book's website, the Honda Accord is the greatest midsized automobile for resale value. For a sample of 33 Honda

Accords, the file AutoResale provides the mileage, age, and selling price. To access the data, click the datafile logo. The predicted regression formula is:

Selling price = 20385.25049 - 0.03739 Mileage - 686.33668 age.

Calculate the asking price for a 40,000-mile, four-year-old Honda Accord.

Given data :

Age= 4 year, Mileage=40,000 miles

Hence the selling price

= 20385.25049 - 0.03739 Mileage - 686.33668 age

= 20385.25049 - 0.03739(40,000) - 686.33668 ( 4 )

= $16144.32

To know more about Selling price, visit:

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