Used cars are often sold wholesale at auctions, and from these sales, retail sales prices are recommended. The following table gives the recommended prices in 2009 for a four-door manual transmission...

(a) Fit these data with a model of the formy=ae^bx
. Graph the(
x_i
,yi)’s and superimpose the least squares exponential curve.

(b) What would you predict the retail price of an eleven-year- old Toyota Corolla to be?

(c) The price of a new Corolla in 2009 was $16,200. Is that figure consistent with the widely held belief that a new car depreciates substantially the moment it is purchased? Explain.