Question

The equation of the least-squares regression line for predicting selling price from appraised value is

(a)$\widehat{\text{price}}=79.49+0.1126\text{(appraised value)}$

(b)$\widehat{\text{price}}=0.1126+1.0466\text{(appraised value)}$

(c)$\widehat{\text{price}}=127.27+1.0466\text{(appraised value)}$

(d)$\widehat{\text{pnice}}=1.0466+127.27\text{(appraised value)}$

(e)$\widehat{\text{price}}=1.0466+69.7299\text{(appraised value).}$

Short answer

$\widehat{\text{price}}=127.27+1.0466\text{(appraised value)}$

Step-by-step solution

Given Information

Need to find the least-squares regression line for predicting selling price from the appraised value.

Explanation

General least-squares regression equation:

$\text{price}=a+b\left(\text{appraisedvalue}\right)$

The y-intercept a is given in the column of "Coef" and in the row of "Constant":

$a=127.27$

The slope b is given in the column of "Coef" and in the row of "Appraisal":

$b=1.0466$

The least-squares regression equation then becomes:

$\text{price}=127.27+1.0466\left(\text{appraisedvalue}\right)$