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Business Mathematics Assignment PDF

Added on - 16 Nov 2021

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University
Business Mathematics
By
Your Name
Date
Page1of10
© <Your Name> 2018
Assignment 2: Regression Analysis and Linear Programming
Instructions
1.All answers should be presented both in the Word documents and the Excel
spreadsheet
oWord: answer should be after each corresponding question without changing
the order of the questions.
2.Answers should be highlighted in red color.
Problem 1.(20 points)
The cost of a previously owned car depends upon factors such as make and model, model
year, mileage, condition, and whether the car is purchased from a dealer or from a private
seller. To investigate the relationship between the car’s mileage and the sales price, data
were collected on the mileage and the sale price for 10 private sales of model year 2000
Honda Accords (Price Hub website, October 2008).
Miles
(1000s)
Price
($1000s
)
907
597,5
666,6
877,2
907
1065,4
946,4
577
1385,1
877,2
a.Using Excel and the excel file provided, develop a scatter diagram with miles as the
independent variable.
Page2of10
© <Your Name> 2018
Answer:
b.What does the scatter diagram developed in part (a) indicate about the relationship
between the two variables?
Answer:
The scatter plot indicates that there is a negative linear relationship between price and
miles. Therefore, the price will reduce with increase in the number of miles covered.
c.Use the least squares method to develop the estimated regression equation.
Answer:
In the least square method, the slope of the regression equation is given by the formula
below[ CITATION Dan06 \l 1033 ].
m=Nxyxy
N(x2)(x)2
m=10(5667.7)(874)(66.4)
10(81540)(874)2=1356.6
51524=0.0263
The intercept is given by the equation:
c=(y)(x2)(x)(xy)
n(x2)¿¿
Page3of10
© <Your Name> 2018
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