|(A random sample of 743 recently sold used cars.)|
You are employed as a research assistant at the American Automobile Association (AAA) and your supervisor, Salvador Apari, asks you to study the characteristics of recently sold used cars. For this purpose you take a sample of 743 automobiles that were recently resold.
For each automobile you collect data on several variables (see the Variable INFO tab) but for the reports you will be preparing you decide to focus on one key numerical variable, “Price” (i.e., the price paid in thousands of dollars when purchasing the used vehicle), and one key categorical variable, “Type” of vehicle – Coupe, Minivan Muscle Cr, PickupT, Sedan, SedanWg, Sports Cr, SUV, Van, or Wagon. You also decide to use a grouping categorical variable “Origin” since each vehicle is manufactured in either Asia or Europe or in the USA. This will enable you to make comparisons of both the “Price” of the vehicle and the “Type” of vehicle based on its origin – manufactured in either Asia or Europe or manufactured in the USA. In addition, you have also selected the numerical variable “Mileage” (i.e., the mileage, in thousands, recorded on the odometer of the used vehicle at time of resale) to develop a simple linear regression model to predict the “Price.”