A linear model to predict the Price of a 2012 Honda Civic EX (in dollars) from its Mileage (in miles) was fit to 18 cars that were available during the week of March 1, 2013 (Kelly’s Blue Book,www.kbb.com) within 200 miles of San Francisco, CA. The model was
d) What does the y-intercept mean in this context? Is it meaningful?
e) What do you predict the price to be for a car with 50,000 miles on it?
f) If the price for a car with 50,000 miles on it was $14,000, what would the residual be?
g) Would that car for $14,000 and 50,000 miles seem like a good deal or a bad deal? Explain.
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