The regression equation ŷ = 6050 – 725x can be used to predict the value of a china cabinet after x years. Identify the various components of the equation.
Answer
A
The value of a new china cabinet was $725. The value appreciated (increased in value) by $6,050 per year on average.
B
The value of a new china cabinet was $6,050. The value appreciated (increased in value) by $725 per year on average.
C
The value of a new china cabinet was $725. The value depreciated (decreased in value) by $6,050 per year on average.
D
The value of a new china cabinet was $6,050. The value depreciated (decreased in value) an average of $725 per year.