A statistics student wanted to determine if the distance to a destination was related to the price an airline would charge to fly to that destination. The student did a regression of airfare, y, on distance, x, and obtained the printout shown
below from a statistical software package.
Predictor Coef SE Coef
t-ratio р
Constant 83.02
49.29
1.689
0.046
Distance 0.117
0.028
4.179
0.000
S = 25.25
R-Sq = 63.2%
R-Sq(Adj) = 64.7%
Which of the following correctly interprets the value of 25.25?
The standard deviation of the airfares is $25.25.
The standard deviation of the distances is 25.25 miles.
O When the distance traveled is O miles, the model predicts an airfare of $25.25.
For every increase in one mile, the model predicts an increase in $25.25 in airfare.
O The actual prices will vary by about $25.25 of the price predicted for their distance by the linear model.