Answer:
797.42
Step-by-step explanation:
Given the Output of a linear regression data using R;
From the result table;
Intercept = 72.807562
Gradient or slope = 0.009792
General form of a linear equation:
y = mx + c
Where y = response variable ; x = explanatory variable ; c = intercept and m = gradient / slope
Hence, the regression equation becomes :
y = 0.009792x + 72.807562
Using these regression results, what is the estimated repair cost on a car that has 74,000 miles on it?
x = 74,000
y = 0.009792(74000) + 72.807562
y = 724.608 + 72.807562
y = 797.42
Answer:
The estimated repair cost on a car that has 74,000 miles on it is $797.42.
Step-by-step explanation:
The statement: Im(formula = Repair.Costs ~ Miles.Driven, data = Dataset) implies that the variable "Repair.Costs" is the dependent variable and the variable "Miles.Driven" is the independent variable.
From the provided data the regression equation formed is:
[tex]\text{Repair.Costs}=72.807562+0.009792\cdot \text{Miles.Driven}[/tex]
Compute the estimated repair cost on a car that has 74,000 miles on it as follows:
[tex]\text{Repair.Costs}=72.807562+0.009792\cdot \text{Miles.Driven}[/tex]
[tex]=72.807562+0.009792\cdot 74000\\\\=72.807562+724.608\\\\=797.415562\\\\\approx 797.42[/tex]
Thus, the estimated repair cost on a car that has 74,000 miles on it is $797.42.
