The scatter plot below shows data for the value of a new mutual fund (y), in thousands of dollars, in a given year, where x is the year. The least squares regression line is given by yˆ=28,450−344x.
Interpret the slope of the least squares regression line.
Select the correct answer below:
On average, the value of the mutual fund is expected to decrease by $344,000 each year.
On average, the value of the mutual fund is expected to increase by $344,000 each year.
The value of the mutual fund decreases by exactly $344,000 each year.
The slope should not be interpreted.
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