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.

In the equation ŷ = 38,759 − 3,750x, the y-intercept is 38,759, so the model predicts a new car (at x = 0 years) is worth $38,759. The slope is −3,750, meaning the predicted value decreases by about $3,750 each year. Therefore, the correct interpretation is that the car starts at $38,759 and depreciates by about $3,750 per year.

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