Truck Rentals A truck rental company rents a moving truck for one day by charging $29 plus $0.20 per mile. Write a linear equation that relates the cost C, in dollars, of renting the truck to the number x of miles driven. What is the cost of renting the truck if the truck is driven 110 miles? 230 miles?
Linear Regression Mathematical Models Expression that describes the relationship between variables 2 types o Deterministic model o Probabilistic model Hypothesize 2 components Deterministic Random error Straight line probabilistic model y = 0+ x1+ y dependent variable x independent variable E(y) = 0 + 1x Deterministic component (epsilon) Random error component 0(beta zero) = yintercept of the line 1(beta one) = slope of the line How do you determine what line “fits best” on a Scattergram Least Squares line Sum of the errors = 0 o Mean error = 0