Suppose that you sell ice cream from a cart on the street. After you pay the ice cream supplier, the regression line that predicts your ice cream profits from the number of hours you work has a slope of 15. But the man who owns the cart charges you $5 per hour in rent. How much money will you earn per hour?
A) $15
B) $10
C) $5
D) nothing

Question

Quizplus · Accepted Answer

The slope of 15 represents the increase in ice cream profits for every hour worked, before factoring in the cart rental fee. Since the owner charges $5 per hour, the actual increase in profit per hour is 15 - 5 = 10. Therefore, the seller will earn $10 per hour.

Suppose That You Sell Ice Cream from a Cart on the Street