Market researchers were interested in the relationship between the number of pieces in a brick-building set and the cost of a set. Information was collected from a survey and was used to obtain the regression equation ŷ = 0.08x + 1.20, where x represents the number of pieces in a set and ŷ is the predicted price (in dollars) of a set. Which statement best describes the meaning of the slope of the regression line?
Answer
A
For each increase in price by $1, the predicted number of pieces increases by 0.08.
B
For each increase in price by $1, the predicted number of pieces increases by 1.20.
C
For each increase in the number of pieces by 1, the predicted price increases by $0.08.
D
For each increase in the number of pieces by 1, the predicted price increases by $1.20.
Explanation
In the regression equation, the slope is 0.08, and x represents the number of pieces while ŷ represents the predicted price in dollars. So for each additional piece, the predicted price increases by $0.08. The $1.20 value is the y-intercept, not the slope.
AI-written and checked against the verified answer.