Question

Question 8 (1 point)

Suppose that in a certain neighborhood, the cost of a home is proportional to the size of the home in square feet. If the regression equation quantifying this relationship is found to be (cost) = 85.779*(size) + 693.738, what does the slope indicate?

Question 8 options:

	1) When size increases by 1 square foot, cost increases by 85.779 dollars.
	2) When size increases by 1 square foot, cost increases by 693.738 dollars.
	3) We are not given the dataset, so we cannot make an interpretation.
	4) When cost increases by 1 dollar, size increases by 693.738 square feet.
	5) When cost increases by 1 dollar, size increases by 85.779 square feet.

Answer 1

We have given regression equation is,

(cost) = 85.779*(size) + 693.738

slope = 85.779

1)

When size increases by 1 square foot, cost increases by 85.779 dollars.