Suppose a Rental Car Company Uses Simple Linear Regression to Develop

question 1

Multiple Choice

Suppose a rental car company uses simple linear regression to develop an equation that predicts the repair costs for each of its vehicles based on the mileage of the car (total miles driven) .The company uses the following data on repair costs and miles driven for five of its cars: The intercept of the least squares regression line is:

• A)0.067
• B)2.89
• C)6.46
• D)13.85

---

Definitions:

Advantages

The favorable factors or benefits that contribute to achieving success or a superior position.

Disadvantages

The negative or less favorable aspects of a situation, decision, or condition that may pose challenges or reduce effectiveness.

Positive Reinforcement

The process of encouraging or establishing a pattern of behavior by offering rewards for desired behaviors.

Desirable Behaviour

Refers to actions or responses that are encouraged, rewarded, or sought after in a given context, particularly because they achieve positive outcomes.