A colleague went to the lego.com website in February 2014 and recorded the numbe

Question

A colleague went to the lego.com website in February 2014 and recorded the number of pieces and the sales price for 157 Lego products listed there. The equation of the least squares line turns out to be

Predicted price = 4.86 + 0.105*pieces,

and the value of r^2 (r-squared) is 0.949. Which of the following interpretations is correct?

Select one:

a. The least squares line correctly predicts the price for 94.9% of the Lego products.

b. 10.5% of the variability in prices is explained by the number of pieces.

c. 94.9% of the prices fall on the least squares line based on the number of pieces.

d. 94.9% of the variability in prices is explained by the number of pieces.

Explanation / Answer

Answer: option (d)

94.9% of the variability in prices is explained by the number of pieces.

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