Question

Market researchers were interested in the relationship between the number of pieces in a brick-building set and the cost of the set. information was collected from a survey and was used to obtain the regression equation yì‚ = 0.08x + 1.20, where x represents the number of pieces in a set and yì‚ is the predicted price (in dollars) of a set. what is the predicted price of a set that has 500 pieces? a. $40 b. $41.20 c. $600 d. $6,235

Answer 1

The predicted price of a brick-building set with 500 pieces, using the regression equation ý = 0.08x + 1.20, is $41.20.

The predicted price of a set with 500 pieces is b. $41.20.

Step-by-step explanation:

The student is asking about the use of a regression equation to predict the price of a brick-building set given the number of pieces it contains. The provided regression equation is ý = 0.08x + 1.20, where x is the number of pieces, and ý is the predicted price in dollars.

To find the predicted price for a set with 500 pieces, we simply substitute 500 for x in the equation:

ý = 0.08(500) + 1.20

ý = 40 + 1.20

ý = 41.20

Therefore, the predicted price of a set that has 500 pieces is $41.20, which corresponds to option B.