Reconsider the previous two exercises and the Legos data file. The equation of t
ID: 3171714 • Letter: R
Question
Reconsider the previous two exercises and the Legos data file. The equation of the least squares line turns out to be price = 4.86 + 0.105 times pieces, and the value of r^2 = 0.949. Identify which of the following interpretations are correct, which are incorrect, and which are correct but incomplete or poorly worded. The Legos cost 10.50 cents per piece. For each additional dollar in price, the predicted number of pieces in the set increases by about 10.50. For each additional piece in the set, the predicted price increases by about 10.50 cents. The price goes up 10.50 cents for each additional piece in the set. The predicted price for a set with 0 pieces is $4, 86. The predicted price increases by $ 10.50 for each additional 100 pieces in the set.Explanation / Answer
a. The statement is incorrect as the the price is to be determined using the given least square line.
b. The statement is incorrect because the least square line is computed to predict the price from the number of pieces and not to predict the number of pieces from the price.
c. The statement is not completely correct because as per the least square line for each additional piece in the set, the predicted price increase by 0.105 and not by 10.50.
d. The statement is not completely correct because as per the least square line for each additional piece in the set, the predicted price increase by 0.105 and not by 10.50.
e. The statement is correct that the predicted price for a set with 0 pieces is $ 4.86 as can be seen from the given least square line that the intercept of the line is 4.86, thus for piece = 0, the price will be $ 4.86.
e. The statement is correct that the predicted price increases by $ 10.50 for each additional 100 pieces in the set because as per the least square line, the predicted price increases by $ 0.105 for each additional piece in the set thus for pieces = 100, the predict price will increase by $ 10.50 .
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