Question

A company hires you to develop a linear regression forecasting model. Based on the company's historical sales informationτ, you determine the intercept value of the model to be 1,200.You also find the slope value is -.50. If after developing the model you are given a value of X = 10, which of the following is the resulting forecast value using this model?A. - 3,800B. 700C. 1,700D. 1,040E. 12,000

Answer 1

B. 700

Step-by-step explanation:

the general linear equation formula is as follow:

`y = mx + h`

Where h is the value at which the formula intercept the Y axis

And m is the slope value, therefore:

`y = -50x + 1,200`

if x = 10

`y = -50(10) + 1,200`

y = -500 + 1,200

y = 700

This will be the value of the formula when x = 10