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Chapter 3: Q 41. (page 203)

More wins? Refer to Exercise 37

a. Interpret the slope of the regression line.

b. Does the value of the y-intercept have meaning in this context? If so, interpret the y-intercept. If not, explain why.

Short Answer

Expert verified

Part (a) The slope in the least square regression equation is the coefficient of xand indicates the average rise or decrease of yper unit of x

Part (b) It does not have meaning.

Step by step solution

01

Part (a) Step 1: Given information

It is stated in the regression line question that,

y铃�=60.7+0.139x

02

Part (a) Step 2: Explanation

As we know, the slope in the least square regression equation is the coefficient of xand indicates the average rise or decrease of y per unit of xThus, the slope is,

b1=0.139

As a result, the number of wins improves by 0.139wins per million dollars on average.

03

Part (b) Step 1: Explanation

The y-intercept, as we all know, is a constant in the least square regression equation that reflects the average y-value when x is 0 As a result, the y-intercept is:

b0=60.7

When the payroll is zero million dollars, this means there are 60.7 victories. However, having a payroll of zero million dollars is illogical, and the y-value intercepts has no bearing in this situation.

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