Answer to Question #268919 in Statistics and Probability for tayotayo

Question

The owner of a second-hand car dealership 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.

Answer 1

Draw a scatter diagram and comment the relation between the age of the car and its selling price.

Scatter Plot: Scatter plot is the graphical representation of the relationship between two variables of a data-set. It represents data points on a Cartesian system or a two-dimensional plane. The independent variable is plotted along the X -axis, while the dependent variable is plotted along the Y -axis.

We draw the scatterplot of the given data using MS-Excel. Below are the steps:

Step 1: Copy the given data into an excel spreadsheet.

Step 2: Select the entire data. Go to Insert > in Charts area, click Insert Scatter (X, Y) or Bubble Chart > click on the first option.

This will do the scatterplot of the data into the excel spreadsheet.

From the scatterplot, we see that, although the points do not make any close linear pattern, but the price decreases as age increases.