Question 2 (1 point) Suppose that in a certain neighborhood, the cost of a home

Question

Question 2 (1 point)

Suppose that in a certain neighborhood, the cost of a home is proportional to the size of the home in square feet. If the regression equation quantifying this relationship is found to be (cost) = 89.663*(size) + 733.55, what does the slope indicate?

Question 2 options:

1)

2)

3)

4)

5)

1)

When size increases by 1 square foot, cost increases by 89.663 dollars.

2)

When size increases by 1 square foot, cost increases by 733.55 dollars.

3)

When cost increases by 1 dollar, size increases by 89.663 square feet.

4)

We are not given the dataset, so we cannot make an interpretation.

5)

When cost increases by 1 dollar, size increases by 733.55 square feet.

Explanation / Answer

Here we have given that

The least square regression line

y(cost) = 89.663 *(size) + 733.55

where

eta o =intercept = 733.55

eta 1 = slope = 89.663

Here

we know the interpretation of slope is the consistent change between x and y also it measure the estimated change in the average value of y as result of a one unit change in x

that is when size X increases by 1 square foot cost increase by 89663 dollars.

that is option 1 is correct

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