George needs money to buy a motor scooter He borrows 1000 fr

George needs money to buy a motor scooter. He borrows $1000 from his favorite aunt who has agreed not to charge him interest. He agrees to pay $50 per month. In a regression model to represent his outstanding debt, the value of the slope will be ____.

Solution

If we build a regression model for remaining debt, the dept decreases steadly $50 per month. This regression model will have x = independent model as number of months passed, and y = dependent model = number of dollars left.

Clearly the slope will be change of dept with time = -50 (in $ per month)