The scatter plot below shows data for the average cost of a high-end computer (y, in dollars) in the year x years since 2000. The least squares regression line is given by yˆ=−1677+314x.
A coordinate plane has a horizontal x-axis labeled Year from 4 to 12 in increments of 2 and a vertical y-axis labeled Cost in dollars from 0 to 2000 in increments of 500. The following points are plotted: left-parenthesis 6 comma 250 right-parenthesis, left-parenthesis 7 comma 550 right-parenthesis, left-parenthesis 9 comma 1000 right-parenthesis, left-parenthesis 10 comma 1300 right-parenthesis, and left-parenthesis 11 comma 2000 right-parenthesis. A line rises from left to right, passing through left-parenthesis 7 comma 550 right-parenthesis and left-parenthesis 10 comma 1500 right-parenthesis. All coordinate are approximate.
Interpret the slope of the least squares regression line.
Select the correct answer below:
On average, the average cost of a high-end computer is predicted to decrease by $314 each year.
On average, the average cost of a high-end computer is predicted to increase by $314 each year.
The average cost of a high-end computer increases by $314 each year.
On average, the average cost of a high-end computer is predicted to decrease by $1677 each year.
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