Please help me with this problem 3. Suppose a construction firm is interested in

Question

Please help me with this problem 3. Suppose a construction firm is interested in examining how the amount spent on new construction has changed over time. They have data on amount spent on new construction (in billions of dollars) in the entire U.S. for the years 1991 through 2001. A graph of the data along with the least- squares regression equation is given below. Fitted Line Plot for Linear Model 600 500 400 10 12 Year Regression Equation Predicted NewConstruct 368.23+ 42.993 Year If appropriate, interpret the sample y-intercept within the context of the problem. If not appropriate, explain why a. b. Interpret the sample slope within the context of the problem.

Explanation / Answer

a. The intercept (often labeled the constant) is the expected mean value of Y when all X=0. Start with a regression equation with one predictor, X. If X sometimes = 0, the intercept is simply the expected mean value of Y at that value.So in this probelm intercept is the amount that is going to affect New Construction even if no change in year

b. The slope of a regression line (b) represents the rate of change in y as x changes. So here slope gives the value in a way that Y will change as x changes, means as year changes the cost of new construction changes

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