Suppose a Rental Car Company Uses Simple Linear Regression to Develop

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 least squares line predicts that if the mileage of a car increases by 10,000 miles, its annual repair costs will increase by an estimated:

A) $13.85
B) $64.64
C) $138.52
D) $144.96