Try It Part 2
Exercise 3: What equation is best to use to predict the depreciation of an automobile over the next few years?
Cars depreciate, or lose value, over the years. The table below shows the decrease in value of a certain automobile.
| Year | Value of Car |
|---|---|
| 2010 | $27,385 |
| 2011 | $25,175 |
| 2012 | $23,044 |
| 2013 | $21,327 |
| 2014 | $19,562 |
| 2015 | $17,983 |
Use the data above to answer the questions in the following activity.
Residual Plots Tip
Use your graphing calculator to construct the residual plots. Residual plots that display a scatter of points equally above and below the horizontal axis, with no distinct pattern, signify that the regression curve is a good fit for the data.
