Classified ads in a newspaper offered 21 used cars of the same make and model fo
ID: 3128682 • 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 (m 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 interval0 Choose the correct answer below. 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. 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 ag the car. 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 for every one year increase in the age of used cars of the same make and modeL the asking price will be between $1011 and $1439. 95% of all random samples of 21 used cars of the same make and model will have asking prices that decrease between $1011 and $1439 for one year old cars.Explanation / Answer
Given that, Age of the car is explanatory variable and asking price is response variable. A 95% confidence interval for the slope of the population regression line is (–1439, –1011).
Ans:
Since the confidence values contain negative values, it can be concluded that for every one year increases 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.
Ans : Option A