I think this is a very basic question (from a total stat newbie). I'm trying to understand a problem I was given (I'm not a statistics student). It's a multi-part problem having to do with car sales. In the first part, I ran a linear regression on car mileage/sales price data (price being the dependent variable). This gives me a function where I can plug in a mileage number and it will spit out a price.
The next part of the problem states "using your results from the linear regression, compute an expected time to sell given 3 prices - [P, P+10%, P-10%] and assuming a 50% sell probability" and I'm not sure what this means or how to go about it. I suspect this wording is less vague to people who are well-versed in statistics. Could someone shed some light on it for me? Thanks!
The next part of the problem states "using your results from the linear regression, compute an expected time to sell given 3 prices - [P, P+10%, P-10%] and assuming a 50% sell probability" and I'm not sure what this means or how to go about it. I suspect this wording is less vague to people who are well-versed in statistics. Could someone shed some light on it for me? Thanks!