Question

the plot shown below describes the relationship between the average income in a city and the average rent for a 1 - bedroom apartment in that city. which of the following is the best estimate of the average change in rent associated with a $5,000 increase in income? choose 1 answer: a $2 b $20 c $200 d $2000

Explanation:

Step1: Assume a linear - relationship (common for such trends).

If we consider the slope of the line representing the relationship between income and rent from the plot (not shown here but conceptually). Let's say the slope of the regression line (if we were to fit one) represents the change in rent per unit change in income. If we assume a reasonable slope value based on typical economic relationships between income and housing costs.

Step2: Estimate the change.

A $5000$ increase in income. In many real - world scenarios of income - rent relationships, a $5000$ increase in income would lead to an increase in rent in the range of a few hundred dollars. Looking at the options, $2$ and $20$ are too small, and $2000$ is too large. A $200$ increase in rent for a $5000$ increase in income is a reasonable estimate.

Answer:

C. $200$