Question

Different hotels in a certain area are randomly selected, and their ratings and prices were obtained online. Using technology, with x representing the ratings andy representing price, we find that the regression equation has a slope of 130 and a y-intercept of -390. Complete parts (a) and (b) below.

 a. What is the equation of the regression line? Select the correct choice below and fill in the answer boxes to complete your choice 

b. What does the symbol y represent? 

A. The symbol y represents the average price of hotels in the area 

B. The symbol y represents the predicted value of price. 

C. The symbol y represents the expected price when the hotel's rating is 0. 

D. The symbol y represents the amount that price increases with a 1-point increase in rating

Answer 1

From the above given information

(a)

The slope is 130 and the intercept is -390

Then the regression equation is

y (price) = -390 + 130 x(rating)

B.) y = -390 + 130 x  

Hence option B is correct.

(b)

B.) The symbol y^{^} represents the predicted value of price

Hence option B is correct