Resale Value of Long’s Automobile
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Jennifer Stance is contemplating the purchase of a new car. One of her primary concerns is how well the car will maintain its value. In particular, she is wondering how certain options affect a car’s resale value,
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One car Jennifer is considering is Chevrolet Camaro two-door coupe. She prefers a car with a five-speed manual transmission over one with an automatic transmission but would consider the automatic transmission if this significantly increased the car’s resale value. Living in Northern Maine, she is also somewhat indifferent about purchasing a car with air conditioning, but again would adding this option if it significantly increased the car’s resale value. Finally, Jennifer would really like to indulge a bit and upgrade to a leather interior, but she is not clear on the value of doing this.
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To analyze this situation, Jennifer contacted an old high school friend that works at a used car lot. He agreed to provide her with data on all two-door Camaro coupes that were sold this year. She entered this information into a spreadsheet shown below.
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