Answer:
The correct option is 4.
Step-by-step explanation:
The scatter plot shows the trade-in values and private-party value of 10 cars.
The equation for regression line is
[tex]\hat{y}=1.07x+1.241[/tex] .... (1)
The slope intercept form of a line is
[tex]y=mx+b[/tex] .... (2)
Where, m is slope and b is y-intercept.
From equation (1) and (2), we get
[tex]m=1.07, b=1.241[/tex]
The rate of change is 1.07. It means each increase of $1 in trade-in value, the private party value increases by $1.07.
So, the each increase of $1000 in trade-in value, the private party value increases by
[tex]\$1.07\times 1000=\$1070[/tex]
Therefore the correct option is 4.
