Geoff is interested in purchasing a moderately priced SUV. He realizes that a car or truck loses its value as soon as it is driven off the dealer’s lot. Geoff uses linear regression to get a better sense of how this decline works.The regression line is yˆ = 34.03 –
3.04x, where x is the age of the car in years, and y is the value of the car (×$1000). In terms of age and value:
a. Explain the meaning of the y-intercept, 34.03.
b. Explain the meaning of the slope, _3.04.