Classified ads in a newspaper offered 21 used cars of the same make and model fo
ID: 3128664 • Letter: C
Question
Classified ads in a newspaper offered 21 used cars of the same make and model for sale. A regression analysis was performed with the age of the car (in years) as the explanatory variable and asking price (in dollars) as the response variable. A 95% confidence interval for the slope of the population regression line is (- 1439: - 1011). What is the correct interpretation of this confidence interval? 95% of all used cars of this make and model will have an asking price that decreases between $1011 and $1439 as the cars age by one year. One can be 95% confident that the asking price of used cars of the same make and model will decrease between $1011 and $1439 for every one year increase in the age of the car. For every one year increase in the age of a car of the same make and modeL the asking price of the car will decrease between $1011 and $1439 95% of the time. 95% of all random samples of 21 used cars of the same make and model will have asking prices that decrease betweenExplanation / Answer
Interpretation: One can be 95% confident that the asking price of used cars of the same make and model will decrease between $1011 and $1439 for every one year increase in the age of the car.
Hence the answer is B.