Market researchers were interested in the relationship between the price of bobbleheads and the demand of bobbleheads. Information was collected from a survey and was used to obtain the regression equation widehat y is equal to negative 0 point 2 2 7 x plus 50 point 4 5 5 , where x represents the price of a bobblehead (measured in dollars) and widehat y is the predicted demand of bobbleheads (in units). Which statement best describes the meaning of the y - intercept of the regression line?
Answer
A
When the price of a bobblehead is 0 dollars , the predicted demand is 50 point 4 5 5 units. This interpretation is not meaningful because a bobblehead cannot have a price of 0 dollars .
B
When the demand for bobbleheads is 0 units, the predicted price is 0 dollars .
C
When the demand for bobbleheads is 0 units, the predicted price is 50 point 4 5 5 dollars .
D
When the price of a bobblehead is 0 dollars , the predicted demand is 0 point 2 2 7 units. This interpretation is not meaningful because a bobblehead cannot have a price of 0 dollars .
Explanation
The y-intercept is the predicted value of y when x = 0. Here, x is the price and y is the predicted demand, so setting the price to $0 gives a predicted demand of 50.455 units. Thus, choice A describes the intercept; the interpretation is not meaningful if a bobblehead cannot actually have a price of $0.
AI-written and checked against the verified answer.