Question 7 (Mandatory) (10 points)

What is the practical significance of the y-intercept?

A. For each $1,000 the household income increases, the price paid for a car will go

up by $178.

B. While it is possible for a household to have $0 income, that value for income is

outside the scope of the measured observations, which makes the interpretation

of the y-intercept unreliable.

C. None. Zero income doesn't have anything to do with the price of the car.

D. For each $178 the household income increases, the price paid for a car will go

up by $1000.

Question 10 (Mandatory) (10 points)

The scatter plot appears to have a strong linear pattern, except for three points. Why

are those three points not in line with the others? Choose the best answer.

A. These people don't have very high incomes, but decided to get an expensive car

anyway.

B. Those folks didn't spend very much on a car.

C. While those people have higher incomes, they decided not to spend as much as

they could have on a car.

D. Those folks make a lot more money than the rest.