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This short case will be graded and should be completed individually. The goal is to practice effective writing of statistical summaries in a way a layperson could understand. This is an important skill in the business world. Just knowing the technical details is not enough.

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Your report will be short (max of 1.5 pages including table) and the spacing should be 1.5 inches. In the report, you should incorporate the results properly. When I grade your report, my focus will be on your interpretation of the statistics and flow of your sentences.

Remember that writing is not easy. You will realize that doing the statistics is in fact much easier. So, take your time to articulate your report. For this reason, I advise you to work on the report well ahead of the due date. If you work on it continuously and you have a good grasp of the “Regression” topics, it will not take you more than 3 hours.


Case Study

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The Toyota Camry is one of the best-selling cars in North America.  The cost of a previously owned Camry depends upon many factors, including the model year, mileage, and condition.  To investigate the relationship between the car’s mileage and the sales price for a 2007 model year Camry, the following data show the mileage and sales price for 19 sales (PriceHub website, February 24, 2012). Suppose that you are considering purchasing a previously owned 2007 Camry that has been driven 60,000 miles.  What price you would offer to the seller and why?


Miles (1000s) Price ($1000s)
22 16.2
29 16
36 13.8
47 11.5
63 12.5
77 12.9
73 11.2
87 13
92 11.8
101 10.8
110 8.3
28 12.5
59 11.1
68 15
68 12.2
91 13
42 15.6
65 12.7
110 8.3

Your report should have the following qualities:

  1. Your report must be in a genuine report format with problem definition, analysis and final conclusion.
  2. All important analysis steps need to be followed to arrive at the model to be used for prediction. Attach the details of your analysis at the end of your report. Very simplistic analysis with no sufficient details is assigned a near zero credit. Just running excel does not guarantee any credit.
  3. The report should including the discussions of the scatter diagram, regression equation, test for significant relationship, coefficient of determination, correlation coefficient, interpretation of the slope of the regression equation, 95% prediction interval and the 95% confidence interval of the mean sales price given mileage.


Your report is evaluated based on:


– Content: all issues raised in the case must be addressed effectively

. Your statistical interpretations need to be correct

. Incorrect or sloppy statements are

                      penalized. So, need to think before you write.


    – Organization: the report starts by defining the problem,

                             analyze data and finally address the raised

                             issues. See the example report I have made

                             available. If a student addresses the issues like

                             solving an exercise by listing them in order, I will

                             assign a ZERO as this is not considered a




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