Question

To investigate the relationship between the selling price of a house, y , in dollars, and the size of the house x, in square feet, a local builder collected data on a random sample of 120 houses from a certain region. Assume that the conditions for inference for the slope of a regression line are met. The resulting 95 percent confidence interval for the population slope of the regression line relating price and size is given by (62,99). The local builder claims that the selling price of houses from the region increases by $104 for every extra square foot of space in the house. Which of the following best describes the conclusion that can be reached about this claim based on the confidence interval?

a. The claim is supported by the interval, since the interval does not contain the value 0.
b. The claim is supported by the interval, since all values in the interval are positive.
Ñ. The claim is supported by the interval, since the interval does not contain the value 104.
d. The claim is not supported by the interval, since the interval does not contain the value 0.
e. The claim is not supported by the interval, E since the interval does not contain the value 104.

Answer 1

E) The claim is not supported by the interval, since the interval does not contain the value 104.

Explanation:

A claim that the selling price increases by $104 for each square foot increase in space is not supported by the interval. The interval represents plausible values for the slope of the regression line, and the interval does not include the value 104.