Question

Ben the owner of a used firm, is interested in the association between the interest rate (percent per annum) at the beginning of a month and the number of used cars that he sells that month. He has collected the following data over a period of six months.

When the interest rate is 20, then the number of cars sold is 300.
Interest rate 18, number of cars sold is 250.
Interest rate 15, number of cars sold is 190.
Interest rate 16, number of cars sold is 200.
Interest rate 14, number of cars sold is 180.
Interest rate 19, number of cars sold is 275.

Use the information above predict the number of used cars that Ben will sell if the interest rate is 17% per annum at the beginning of a month.

Answers

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Answer
We are looking at statistics -predicting using a regression line. I used the 'Two-mean regression line' method.
Answer
The coordinates of the two-mean regression line are (15, 190) and (19, 275). Find the equation of the two-mean regression line in terms of the variables. The formula to finding the equation is y-y1=m(x-x1), where m=(y2-y1)รท(x2-x1). Use the equation to predict.
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