Market researchers were interested in the relationship between the number of pieces in a brick-building set and the cost of a set. Information was collected from a survey and was used to obtain the regression equation widehat y is equal to 0 point 0 8 x plus 1 point 2 0 , where x represents the number of pieces in a set and widehat y is the predicted price (in dollars) of a set. Which statement best describes the meaning of the slope of the regression line?
Answer
A
For each increase in the number of pieces by 1 , the predicted price increases by 1 point 2 0 dollars .
B
For each increase in the number of pieces by 1 , the predicted price increases by 0 point 0 8 dollars .
C
For each increase in price by 1 dollars , the predicted number of pieces increases by 1 point 2 0 .
D
For each increase in price by 1 dollars , the predicted number of pieces increases by 0 point 0 8 .
Explanation
In the regression equation, the slope is 0.08, which describes the change in predicted price for each 1-piece increase in the set. Thus, each additional piece is associated with a predicted price increase of $0.08. Choice C states this correctly.
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