Use two points to write an equation for the fuction shown.
1 answer:
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Answer:
(a) The correct option is (B).
(b) The correct option is (C).
Step-by-step explanation:
The least squares linear regression for the total yearly Purchases related to customers' incomes is as follows:
Here,
Dependent variable = total yearly Purchases
Independent variable = customers' incomes
Intercept = 32.8
Slope = 0.013
(a)
An intercept of a least squares linear regression is the expected value of the dependent variable when the value of the independent variable is 0.
In this case the intercept is 32.8.
The intercept indicates that the total yearly Purchases of a customer with 0$ income is of worth $32.8.
Thus, the correct option is (B).
(b)
The slope of a least squares linear regression is the average rate of change in the dependent variable caused by 1 unit change in the independent variable.
In this case the slope is 0.013.
The slope indicates that with a $1 increase in incomes the total yearly Purchases of a customer increases by 0.013 units.
Thus, the correct option is (C).