Twenty young men got a quote for the cost of a car insurance policy. The policy cost and ages of the men are shown in the scatter plot. The
equation for the line of best fit for the data is y=-315.67x + 8986.5 and the correlation coefficient is-0.951.
Select all the statements that are true based on the scatter plot and line of best-fit equation
4,000
3,500
...
3,000
2.500
,,
2,000
1,500
1,000
18
19 20
21 22 23 24 25
D. The line of best fit indicates that, in general, the cost of a car insurance policy for a 21-year-old should be on average, about $315
less than the cost of a car insurance policy for a 20-year-old.
06 The y-intercept from the line of best fit indicates that, if the linear trend holds, a car insurance policy would be 50 for a person who
is about 8,987 years old.
OcEvery 19-year-old in this group has a lower cost of car insurance than the 18-year olds
Od
The value of the correlation coefficient is very close to -1, so there is no association between age and car insurance policy cost.
Car insurance policy cost tends to decrease as the age of the driver increases.
e

The statements that are true based on the scatter plot and the given equation of line of best-fit are:

Given that the correlation coefficient of -0.951, it suggests that the policy cost and ages of the men as shown in the scatter plot are strongly negatively correlated.

This means that, the lower the higher the age of the men, the lesser the cost of a car insurance policy.

The slope value in the equation, y = -315.67x + 8986.5, is -315.67, which is the average cost of a car insurance policy per year.

Therefore, the statements that are true based on the scatter plot and the given equation of line of best-fit are:

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2) Assuming she makes monthly payments for 30 years, How much will Jane have paid total for the house at the end of the 30 years? Don't forget the down-payment.

3) What will her monthly payment be rounded to the nearest dollar, including taxes, insurance, and other fees, if she chooses the 15 year fixed?

4) Assuming she makes monthly payments for 15 years, How much will Jane have paid total for the house at the end of the 15 years? Don't forget the downpayment.

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Phil is going to purchase a home with a sale price of $225,000. He is able to put 20% down for her down-payment and get a mortgage for the balance. The cost of home insurance is $3,200 yearly. The taxes are $1,170 yearly. He is trying to decide between a 30 year fixed loan and a 15 year fixed loan. Interest rate for the 30-year mortgage is 3.75%. Interest rate for the 15-year mortgage is 2.85%. Phil's credit score is 725.



5) What will his monthly payment be, including taxes, insurance, and other fees, rounded to the nearest dollar, if he chooses the 30 year fixed?

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7) What will his monthly payment be, including taxes, insurance, and other fees, rounded to the nearest dollar, if he chooses the 15 year fixed?

8) How much will he have paid total for the house if he does a 15-year mortgage?

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