You are given the data on the price of new Taurus sedans and used Taurus sedans in the file P02_30.xlsx. All used prices are in amounts paid in 1995. For example, a new Taurus bought in 1985 cost...

You are given the data on the price of new Taurus sedans and used Taurus sedans in the file P02_30.xlsx. All used prices are in amounts paid in 1995. For example, a new Taurus bought in 1985 cost $11,790 and the wholesale used price of that car in 1995 was $1700. A new Taurus bought in 1994 cost $18,680 and sold used in 1995 for $12,600.

a. You want to predict the resale value (as a percentage of the original price of the vehicle) as a function of the vehicle’s age. Develop an equation to do this. You should try two different curves and choose the one that fits best.

b. Suppose all police cars are Ford Tauruses. If you were the business manager for the New York Police Department, what use would you make of the information from part a?