One of the primary feeds for beef cattle is corn. The following table presents the average price in dollars for a bushel of corn and a pound of ribeye steak for 10 consecutive months.
$\begin{array}{cc}
\hline \text { Corn Price }(\$ / \mathrm{bu}) & \text { Ribeye Price }(\$ / \mathrm{lb}) \
\hline 6.35 & 12.87 \
6.20 & 13.30 \
5.82 & 11.85 \
6.18 & 12.64 \
6.00 & 12.29 \
6.57 & 14.16 \
\hline
\end{array}$
The least-squares regression line for predicting the ribeye price from the corn price is $y = - 4.8904 + 2.8678 x$.
Predict the ribeye price in a month when the corn price was $\$ 6.40$ per bushel.
A) $\$ 12.79$ per lb
B) $\$ 15.30$ per $\mathrm { lb }$
C) $\$ 18.35$ per $\mathrm { lb }$
D) $\$ 13.46$ per lb

Question

Quizplus · Accepted Answer

To predict the ribeye price when the corn price is $6.40 per bushel, substitute $x = 6.40$ into the regression equation $y = -4.8904 + 2.8678x$. This gives $y = -4.8904 + 2.8678(6.40) = -4.8904 + 18.3541 = 13.4637$, which rounds to $\$13.46$ per lb.

One of the Primary Feeds for Beef Cattle Is Corn