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Derek Is Studying the Relation Between the Selling Price of a House

Question 25

Multiple Choice

Derek is studying the relation between the selling price of a house (in dollars) (Y) and the age of the house (in years) (X) . It is shown that rXY = - 0.2, Xˉ\bar{X} = 40, Yˉ\bar{Y} = 460,000. If Derek's own house was constructed 50 years ago, then the predicted selling price of his house based on simple linear regression would be


A) more than 460,000 dollars.
B) less than 460,000 dollars.
C) exactly 460,000 dollars.
D) impossible to be determined based on the information given.

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