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 ŷ = –0.227x + 50.455, where x represents the price of a bobblehead (measured in dollars) and ŷ 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 demand for bobbleheads is 0 units, the predicted price is $0.
B
When the demand for bobbleheads is 0 units, the predicted price is $50.455.
C
When the price of a bobblehead is $0, the predicted demand is 50.455 units. This interpretation is not meaningful because a bobblehead cannot have a price of $0.
D
When the price of a bobblehead is $0, the predicted demand is 0.227 units. This interpretation is not meaningful because a bobblehead cannot have a price of $0.