Which of the following statements is correct in relation to the airline?
A commercial airline uses its database to develop the following regression model to predict the cost of a flight Y (in dollars) by number of passengers:
Y = 1,570 + 40.7x
Which of the following statements is correct in relation to the airline?
A . The cost of a flight will increase by $40.7 when an additional passenger is added to the flight.
B . The regression model makes accurate predictions for this commercial airline, therefore it will provide good forecasts for other commercial airlines.
C . The positive intercept in the model indicates a positive relationship between the cost of a flight and the number of passengers.
D . If each pair of data points is plotted on a graph with Y on the vertical axis and X on the horizontal axis, there will be a downward sloping line.
Answer: D
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