The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.
Car Age (years) Selling Price ($000) Car Age (years) Selling Price ($000)
1 9 8.1 7 8 7.6
2 7 6.0 8 11 8.0
3 11 3.6 9 10 8.0
4 12 4.0 10 12 6.0
5 8 5.0 11 6 8.6
6 7 10.0 12 6 8.0
(a) Determine the regression equation. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.)
a = ________
b =_________
(b) Estimate the selling price of a 10-year-old car (in $000). (Round your answer to 2 decimal places.)
___________
(c) Interpret the regression equation (in dollars). (Omit the "$" sign in your response.)
For each additional year, the car decreases $______ in value.