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 ŷ = 0.08x + 1.20, where x represents the number of pieces in a set and ŷ is the predicted price (in dollars) of the set. What is the predicted price of a set that has 2,520 pieces?
Substitute 2,520 for x in the regression equation: ŷ = 0.08(2,520) + 1.20. The multiplication gives $201.60, and adding $1.20 gives a predicted price of $202.80, choice A.
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