Question

click this link to download the spreadsheet for use in this activity. create scatterplots using the income and house spreadsheet linked above. adjust the range of values in the horizontal and vertical axes, and create a trendline.
jump to level 1

the equation for the regression line that predicts selling price using household income as the explanatory variable is
\\(\hat{y} = 6.98x - 164243\\)
what is the interpretation of the slope?
increase in selling price as household income increases
what is the interpretation of the intercept?
pick
pick
household income when selling price is 0
no practical interpretation
selling price when household income is 0

Explanation:

The regression equation is $\hat{Y} = 6.38X - 164243$, where $\hat{Y}$ is predicted selling price and $X$ is household income. The intercept is the value of $\hat{Y}$ when $X=0$, which would mean a negative selling price. A negative house price has no real-world practical meaning, so the intercept has no practical interpretation.

Answer:

No practical interpretation