A regression equation regarding repair cost of car. The repair cost is the dependent variable and the age of the car is the independent variable. The situation is that as the age of the car increases, the repair cost increases also.
The regression equation is Y'= $80 + 20X
1. What is "20" means in the equation?
2. What is the predicted repair cost for 5 years old car?
3. What kind of correlation is the age of the car and the repair cost?
4. Is it perfect positive or negative? Why?
Solution contains calculation of cost of repairing the car using regression equation.