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. Complete parts (a) and (b) below.

a. What is the equation of the regression line?
b. What does the symbol y represent?
A. The symbol y represents the average price of hotels in the area.
B. The symbol ý represents the amount that price increases with a 1-point increase in rating.
C. The symbol y represents the predicted value of price
D. The symbol y represents the expected price when the hotel's rating is 0

Answer 1

a) Y = 350 + 130X

b) C. The symbol
`\hat {y}` represents the predicted value of price.

Explanation:

The equation of a regression line is given as:

Y = a + bX

Where Y is the dependent variable, X is the independent variable, a is the intercept on the y axis when X = 0 and b is the slope of the regression line.

a) The regression equation has a slope of 130 and a y-intercept of 350. From Y = a + bX, the equation of the regression line is:

Y = 350 + 130X

b) From the question x represents the ratings of different hotels in a certain area and
`\hat {y}` represents the price of the different hotels based on their ratings. Since a regression line is drawn, y represents the predicted value of price