Question

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 ý = 0. 08x +

1. 20, where x represents the number of pieces in a set and is the predicted price (in dollars) of a set. Which

statement best describes the meaning of the y-intercept of the regression line?

Answer 1

Answer: c.

When the number of pieces is 0, the predicted price is $1.20. This interpretation is not meaningful because a set cannot have 0 pieces

Explanation:

The y-intercept in a regression equation shows the value of y when x is 0. For this scenario therefore, the y-intercept is the predicted price of a set when the number of pieces in the set is 0. As the y-intercept is 1.20, this means that when there are no pieces in the set, the predicted price is $1.20.

This however is not logical or meaningful because a set cannot have 0 pieces and if it did, it wouldn't make sense for somebody to pay $1.20 for it.