Question

A study of graduate students examines the relationship between self-reported liking of coffee (0-10 scale, where 0 is dislike and 10 is like very much) (X) and dollars spent on coffee per month (Y).

If the regression equation reads: Y' = 3.75X + 3.25, we know that

		There is a negative linear relationship between liking for coffee and monthly spending on coffee.
		A student who scores 10 on the liking for coffee scale would be predicted to spend $40.75 per month on coffee.
		Predictions of monthly spending on coffee are accurate within plus or minus $6.50.
		A graduate student who dislikes coffee (liking for coffee score = 0) still spends $7 a month on coffee.

Answer 1

Option-B) A student who scores 10 on the liking for coffee scale would be predicted to spend $40.75 per month on coffee.

Because,When X = 10, Y = 3.75 * 10 + 3.25 = 40.75