A real estate agent developed a model to relate a house's selling price (Y) to the area of floor space (X) and the area of floor space squared (X²) . The multiple regression equation for this model is: Y = 125 - 3X + X²where: Y = selling price (times $1,000)
X = square feet of floor space (times 100)
What is the y- intercept (a) ?

Question

Quizplus · Accepted Answer

The y-intercept is the value of the dependent variable (selling price) when all independent variables (square feet of floor space and its square) are zero. In this case, when X and X² are both zero, Y equals 125 (times $1,000). Therefore, the y-intercept (a) is $125,000.

A Real Estate Agent Developed a Model to Relate a House's