Assume we have the data with the prices (y) and year purchased (x) for Mazda car
ID: 3175415 • Letter: A
Question
Assume we have the data with the prices (y) and year purchased (x) for Mazda cars, as taken from the classified section of the Melbourne Age during the course of 1991. Hence the age of the car at the time can be calculated and used to model car price.
(a). The scatter plot from Minitab using this data is given in the following( take price as response variable and year as predictor). Does there appear to be a linear relationship between the two variables? If yes, what sign of the slope would you expect?
(b). The following is the plot of residuals vs. predicted responses. Is the equal variance assumption valid?
(c). See the following normal probability plot and the histogram for the residuals from minitab.
Is the normality assumption valid here?
Versus Fits (response is Price?Explanation / Answer
a)There does appear to be linear relationship between the two variables. The slope will be positive.
b) Yes. There is no evident pattern in the scatter plot
c)Yes, Normality assumption is followed here.