Question

Stephen collected data from a travel website. The data included a hotel's distance from Times Square in

Manhattan and the cost of a room for one weekend night in August. A table containing these data appears below.
0
1
1
3
4
7.
19
Distance From
Times Square
(city blocks) (x)
Cost of a Room
(dollars) (y)
293 263
244
224
185
170
219
153
136
111
Stephen calculated the linear regression equation to be y = -7.8x + 246.3. Using this equation, find the cost of a
room 5 city blocks away from Time Square.
1) $195
2) $207
3) $238
4) $285
What’s the answer?

Answer 1

$207

Explanation:

Given the following :

Data:

X : Distance From Times Square (city blocks)

Y: Cost of a Room (dollars) (y)

The linear regression model generated for the data :

y = -7.8x + 246.3

y = predicted variable ; - 7. 8 = slope of model ; x = predictor variable ; 246.3 = intercept

Using the model:

The cost of a Room 5 block away :

x = 5

y = -7.8(5) + 246.3

y = - 39 + 246.3

y = $207.3