Use the following to answer questions :
The following table lists the ages (in years)and the prices (in thousands of dollars)by a sample of six houses.

-Suppose we have information on the ages (in years)and the prices of a sample of houses.In the regression of price on age for these data,the value of a will represent:
A)the point where this regression line will intersect the y-axis
B)the point where this regression line will intersect the x-axis
C)an decrease in the age of a house due to a $1,000 increase in its price
D)an decrease in the price of a house due to a one year increase in its age

Question

Use the following to answer questions :
The following table lists the ages (in years)and the prices (in thousands of dollars)by a sample of six houses.
 
-Suppose we have information on the ages (in years)and the prices of a sample of houses.In the regression of price on age for these data,the value of a will represent:
A)the point where this regression line will intersect the y-axis 
B)the point where this regression line will intersect the x-axis 
C)an decrease in the age of a house due to a $1,000 increase in its price 
D)an decrease in the price of a house due to a one year increase in its age

Quizplus · Accepted Answer

In a regression equation, the value of 'a' represents the y-intercept, which is the point where the regression line intersects the y-axis.

Use the Following to Answer Questions