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 and y representing price, we find that the regression equation has a slope of 130 and a y-intercept of -350.

Required:
a. What is the equation of the regression line?
b. What does the symbol y represent?

Answer 1

`(a)\ y = 130x -350`

(b) y represents the price of the hotel

Explanation:

Given

`b = 130` --- slope

`a = -350` --- y intercept

Solving (a): The equation of the regression line.

The general form of the equation of the regression line is:

`y = bx + a\\`

Substitute values for b and a;

`y = 130x + (-350)`

Remove bracket

`y = 130x -350`

Solving (b): What y represents

From the question, we understand that: y stands for price

Hence, the symbol y represents the price of a hotel. The value of y depends on x (the ratings)