Question

The least-squares regression line for predicting value from revenue is: value= 21.4 +(2.59xrevenue)

Choose which answer gives the correct value for the slope of this line, and what this slope says about the relationship of value to revenue:
A.The slope of the line is 2.59, which is the value when revenue equals 0.
B.The slope of the line is 21.4, which is the amount that the value changes when revenue increases by one unit.
C.The slope of the line is 21.4, which is the value when revenue equals 0.
D.The slope of the line is 2.59, which is the amount that the value changes when revenue

Answer 1

D is cut off, but what do you think the answer is?

Answer 2

D is The slope of the line is 2.59, which is the amount that the value changes when revenue increases by one unit.

But I think the answer is either D or A because I know what a slope is, I just don't understand the second part of the answer. Can you explain it to me?

Answer 3

Slope in general is the average rate of change

Answer 4

So for example, if you have something like

y = mx+b

Then the slope m, could represent the speed of an object and x could the the time. This would mean that y is the distance traveled (note: in this case, b = 0)

Answer 5

Notice how speed = distance/time

So slope is represented as a ratio or fraction of two variables

Answer 6

Hope that clears things up