The least-squares regression equation ŷ = 38,759 – 3,750x can be used to predict the value of a car after x years. Identify the correct interpretation of the slope and y-intercept.
Answer
A
The model predicts that the value of a new car is $3,750, and the value depreciates by about $38,759 per year.
B
The model predicts that the value of a new car is $38,759, and the value depreciates by about $3,750 per year.
C
The model predicts that the value of a new car is $3,750, and the value appreciates by about $38,759 per year.
D
The model predicts that the value of a new car is $38,759, and the value appreciates by about $3,750 per year.