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Chapter 12: Q. 23 (page 764)

The slope 尾 of the population regression line describes

(a) the exact increase in the selling price of an individual unit when its appraised value increases by \(1000

(b) the average increase in the appraised value in a population of units when the selling price increases by \)51000.

(c) the average increase in selling price in a population of units when the appraised value increases by \( 1000.

(d) the average selling price in a population of units when a unit's appraised value is 0.

(e) the average increase in appraised value in a sample of 16 units when the selling price increases by \) 1000.

Short Answer

Expert verified

(c) the average increase in selling price in a population of units when the appraised value increases by $ 1000.

Step by step solution

01

Given Information

Need to find the slope of the population regression.

02

Explanation

In general: The slope of the population regression line is the average increase of y as x increases by 1.

Since y is the actual selling price in thousands of dollars and x is the appraised market value in thousands of dollars, the correct answer then has to be (c).

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