Question

The relationship between interest rates as a percent (X) and housing starts (Y) is given by the linear equation Ŷ = 4094 - 269X. For what interest rate will the maximum number of housing starts be achieved?

Group of answer choices

0

1

.5

-1

Answer 1

The relationship between interest rates as a percent (X) and housing starts is given by the linear equation,
    .......(1)
Now we want to find the interest rate for which the maximum number of housing starts be achieved.
Housing starts is given by,

X = Interest rates as a percent
0
1
0.5
-1		4363

From the table we clearly see that for interest rate -1 percent  maximum number of housing starts be achieved. But we know that interest rate can never be -1 percent. So that from the table we get for interest rate 0 percent 2nd maximum number of housing starts be achieved.

i.e. For interest rate 0 percent maximum number of housing starts be achieved.

Answer:-  Correct answer is " 1st Option (0) "