Using data on the appraised value of homes, a real estate agent computes the lea

Question

Using data on the appraised value of homes, a real estate agent computes the least-squares regression line for predicting a home's value in 2002 from its value in 1992. The equation of the least-squares regression line is y= $22,000 + 1.6x where y represents a home's value in 2002 and x is the value in 1992. Which of the following is true of the least-squares regression line? It always passes through the point (.), the means of the values of homes (that were used to compute the least-squares regression line) in 1992 and 2002, respectively. O The slope is the change in a home's value in 2002 that would be predicted by a $1 increase in a home's value in 1992. All of the above. It will only pass through all the data points if r = ±1

Explanation / Answer

Using data on the appraised value of homes, a real estate agent computes the least-squares regression line for predicting a home's value in 2002 from its value in 1992. The equation of the least-squares regression line is y= $22,000 + 1.6x where y represents a home's value in 2002 and x is the value in 1992. Which of the following is true of the least-squares regression line? It always passes through the point (.), the means of the values of homes (that were used to compute the least-squares regression line) in 1992 and 2002, respectively. O The slope is the change in a home's value in 2002 that would be predicted by a $1 increase in a home's value in 1992. All of the above. It will only pass through all the data points if r = ±1

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