Let X Be the Number of Pages in a Statistics

question 15

Essay

Let x be the number of pages in a statistics text book and y be the cost of the book (in dollars.) Suppose that x and y are related according to the simple linear regression model with β = slope of the population regression line = 0.075 α = y intercept of population regression line = 25.0 ​
a) What is the equation of the population regression line?
b) On the graph below, sketch the population regression line using the information above. Be sure to label and scale your axes correctly.
c) For a statistics book of 900 pages, what is the predicted cost in dollars?
d) What is the average change in price that is associated with a one-page increase in size of a statistics book?
e) What is the average change in price that is associated with a 20-page increase in size of a statistics book?

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Definitions:

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on investment.

Net Capital Outflow

The difference between a country's purchases of foreign assets and foreign purchases of its assets over a given period.

U.K.

The United Kingdom, a sovereign country located off the northwestern coast of mainland Europe, comprising England, Scotland, Wales, and Northern Ireland.

Open Economy

An economy that interacts freely with other economies around the world.