Incorrect. Textbook prices. The table below compares prices at a college booksto

Question

Incorrect. Textbook prices. The table below compares prices at a college bookstore to those of a large online bookstore. College Bookstore Price ($) Type of Text book Online Bookstore Chemistry Classic Fiction English Anthology Calculus Biology Statistics Dictionary Price ($) 94.18 7.96 48.75 94.15 80.95 6.36 16.80 10.66 45.50 93.40 46.70 76.00 86.70 7.95 24.00 12.70 Style Manual Art History 66.00 a. The equation of the regression line is online 3.57 + 1.03 college Interpret this equation in terms of textbook prices. Textbooks bought online tend to cost about approximately $ 2.65 less than those bought at the college bookstore. (Use the fact that the slope of the line is very close to 1.) b. Construct a residual plot.

Explanation / Answer

Answer

we have the regression equation

Online = -3.57+1.03college

This equation shows that textbook bought online tend to cost about $3.57 less than those bought at the college bookstore

We can also check it by using any price value of college bookstore and finding its corresponding online bookstore price

for example, if we consider $9.95 price value of college bookstore, then its corresponding online bookstore price will be

online price= -3.57 + 1*9.95 = $6.38

we can check the difference between college bookstore price and online bookstore price is 9.95-6.38 = 3.57

so, correct answer is 3.57

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