Making Predictions from a Least-Squares Regression Line
Question 6 of 10 • CA-Statistics and Probability A
A movie production company was interested in the relationship between the budget to make a movie and how well that movie was received by the public. The company collected information on several movies and used it to obtain the regression equation ŷ = 0.145x+0.136, where x represents the budget of the movie (in millions of dollars) and ŷ is the predicted score of that movie (in points from 0 to 1). Which statement best describes the meaning of the y-intercept of the regression line?
Answer
A
When the score of a movie is 0 points, the predicted budget is $0.
B
When the score of a movie is 0 points, the predicted budget is $0.136 million.
C
When the budget of a movie is $0, the predicted rating is 0.136 points. This interpretation is not meaningful, because a movie cannot have a budget of $0.
D
When the budget of a movie is $0, the predicted rating is 0.145 points. This interpretation is not meaningful, because a movie cannot have a budget of $0.