The cost of a leading liquid laundry detergent in different sizes is given below

Question

The cost of a leading liquid laundry detergent in different sizes is given below.

What is the slope of the least squares (best-fit) line? (Round your answer to three decimal places.)

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Interpret the slope. Choose A or B

A. As the cost of liquid laundry detergent increases by $1, the detergent size increases by this many ounces.

B. As the number of ounces increases by one, the cost of the liquid laundry detergent increases by this many dollars.   

Size (ounces) Cost ($) Cost per ounce 16 3.99 32 4.79 64 5.59 200 10.99

Explanation / Answer

The statistical software output for this problem is:

Simple linear regression results:
Dependent Variable: Cost ($)
Independent Variable: Size (ounces)
Cost ($) = 3.5617871 + 0.033374525 Size (ounces)
Sample size: 4
R (correlation coefficient) = 0.99889436
R-sq = 0.99778994
Estimate of error standard deviation: 0.16110361

Parameter estimates:

Analysis of variance table for regression model:

Hence,

Slope of least sqares line = 0.033

As the number of ounces increases by one, the cost of the liquid laundry detergent increases by this many dollars.

Option B is correct.

Parameter Estimate Std. Err. Alternative DF T-Stat P-value Intercept 3.5617871 0.11829476 ? 0 2 30.109424 0.0011 Slope 0.033374525 0.0011106632 ? 0 2 30.049184 0.0011

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