14
QuizMultiple Choice

Simple Linear Regression — Test

Question 14 • Statistics

Market researchers were interested in the relationship between the number of pieces in a building-brick set and the cost of the set. The researchers collected information from a survey and used it 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 the set. What is the predicted price of a set that has 2 comma 520 pieces?

Answer
A
2 dollars comma 017 point 2 0
B
3 dollars comma 024 point 0 8
C
31 dollars comma 485
D
202 point 8 0 dollars

Explanation

Substitute 2,520 for x in the regression equation: 0.08 × 2,520 + 1.20 = 201.60 + 1.20 = 202.80. The predicted price is $202.80, which is choice A.

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