Is a bivariate model adequate to explain vehicle prices

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Reference no: EM131097550

Below are fitted regressions based on used vehicle ads. Observed ranges of X are shown. The assumed regression model is AskingPrice = f (VehicleAge).

(a) Interpret the slopes.
(b) Are the intercepts meaningful? Explain.
(c) Assess the fit of each model.
(d) Is a bivariate model adequate to explain vehicle prices?

If not, what other predictors might be considered? (Data are from Detroit's AutoFocus 4, Issue 38 [September 17-23, 2004]. Data are for educational purposes only and should not be viewed as a guide to vehicle prices.)

Vehicle

n

Intercept

Slope

R2

Min Age

Max Age

Ford Explorer

31

22,252

-2,452

.643

2

6

Ford F-150 Pickup

43

26,164

-2,239

.713

1

37

Ford Mustang

33

21,308

-1,691

.328

1

10

Ford Taurus

32

13,160

-906

.679

1

14

Reference no: EM131097550

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