In the study of a relationship between the selling price in thousands of dollars y of a used car and the car's age x in years. Based on a random sample of one- to 5-year-old used cars from dealerships in your city, you obtain a least squares regression equation y = 198.2 - 21.4 x. The correlation coefficient, r, is 0.992. A friend sees your analysis and wants to know if if he can use your results to decide on a selling price of his 12 year-old car. What is the best response you can give him?

Question

anonymous · Answer

Choices: 

	Yes, the line can be used because the correlation coefficent is very high which indicates it will work for all values of x.
	No, the line should not be used because it is a case of extreme extrapolation.
	None of the above
	No, the line should not be used because the correlation coefficient is weak

anonymous · Answer

I think it's the first one, but I'm not sure.