Question

What is the equation for the regression line predicting selling price using household income as the explanatory variable? What is the interpretation of the slope and intercept?

A) The equation is ____. The slope interpretation is ____. The intercept interpretation is ____.
B) The equation is ____. The slope interpretation is ____. The intercept interpretation is ____.
C) The equation is ____. The slope interpretation is ____. The intercept interpretation is ____.
D) The equation is ____. The slope interpretation is ____. The intercept interpretation is ____.

Answer 1

The equation is y = mx + b. The slope interpretation is the change in selling price for a one-unit increase in household income. The intercept interpretation represents the predicted selling price when the household income is zero.

Step-by-step explanation:

The regression line equation predicting selling price using household income as the explanatory variable is y = mx + b, where y is the selling price, x is the household income, m is the slope, and b is the y-intercept.

The slope of the regression line tells us the change in selling price for a one-unit increase in household income. In this case, the slope represents the amount by which the selling price increases for each additional unit of household income.

The y-intercept represents the predicted selling price when the household income is zero. However, this value may not have a practical interpretation in the context of this problem.