Interpreting Regressions

The popular online auctioneer, eGulf, wants to create an algorithm that will automatically provide recommended sales prices to eGulf sellers. In the case of wePhones, eGulf plans to base its algorithm on the age and sales price of previously sold WePhones. For the sake of convenience, eGulf bases their algorithm on a small stratified sample of 25 WePhones sold in the past week.

eGulf runs an OLS regression to determine the relationship between WePhone age and sales price, and plots their results (illustrated in the R workspace). Each point on the plot indicates the age and selling price for a particular WePhone, and the line shows the results from an OLS regression on this data. What do these results suggest about the relationship of WePhone age and sales price?

Possible answers

There is a negative relationship

There is no relationship

There is a positive relationship

Exercise

Interpreting Regressions

Instructions

Possible answers