A commercial airline uses its database to develop the following regression model to predict the cost of a flight Y (in dollars) by number of passengers: Y = 1,570 + 40.7x
Which of the following statements is correct in relation to the airline?
- The cost of a flight will increase by $40.7 when an additional passenger is added to the flight.
- The regression model makes accurate predictions for this commercial airline, therefore it will provide good forecasts for other commercial airlines.
- The positive intercept in the model indicates a positive relationship between the cost of a flight and the number of passengers.
- If each pair of data points is plotted on a graph with Y on the vertical axis and X on the horizontal axis, there will be a downward sloping line.