Question

question 3 of 27
how confident are you in each of these predictions for $200 million and for $400 million? explain your reasoning.
i am more confident in the prediction for $400 million than the prediction for $200 million. the association is strong enough to be certain that the linear relationship continues above $275 million.
i am more confident in the prediction for $200 million than the prediction for $400 million. $200 million is in this interval of payrolls, but the number of wins predicted is not reasonable.
i am equally confident in the prediction for $200 million and the prediction for $400 million. they are both calculated based upon the same regression line.
i am more confident in the prediction for $400 million than the prediction for $200 million. the prediction for $200 million is an outlier.
i am more confident in the prediction for $200 million than the prediction for $400 million. the prediction for $400 million is an extrapolation.

Explanation:

Predictions are more reliable within the range of data used to create the regression line. $200$ million is within the observed payroll range in the scatter - plot, while $400$ million is an extrapolation beyond the observed data. Extrapolations are less reliable as we can't be sure the linear relationship continues outside the observed range.

Answer:

I am more confident in the prediction for $200$ million than the prediction for $400$ million. $200$ million is in this interval of payrolls, but the prediction for $400$ million is an extrapolation.