Answer to Question #37199 in Statistics and Probability for Ryan

Question

The price and the year of manufacture for 124 randomly selected used Mazda cars were recorded in 1992. It is desired to be able to predict the 1992 price of a used Mazda car from its year of manufacture. In order to use the method of modelling using a least-squares line, it was found necessary to first transform the price variable by taking the (natural) logarithm. The relationship between ln price and year of manufacture was found to be suitable for modelling using the least-squares line.

Regression Statistics
Multiple R 0.901
R Square 0.811
Adjusted R Square 0.809
SE 0.367
Observations 124

Coefficients Standard Error t Stat P-value
Intercept -314.144 14.121 -22.246 0.000
Year of Manufacturer 0.163 0.007 22.879 0.000

If a Mazda car was manufactured in 1989, what, does this model predict to be its 1992 price?