Performing simple regression analysis with the the age of a car (in years) as the independent variable andthe resale value of the car (in $)as the dependent variable, you come up with the following values...

r = -0.27

r²= 0.07

y = 14,233 - 414x

Which would be the correct interpretation of the regression equation?

Question 4 options:

1. 27% of the variability in resale value can be explained by the linear relationship betweenit's age and resale value.
2. Each additional year in a vehicle's age leads to a decrease of $14,233 in its resale value.
3. 7% of the variability in age can be explained by the linear relationship betweenit's age and resale value.
4. 7%of the variability in resale value can be explained by the linear relationship betweenit's age and resale value.
5. Each additional year in a vehicle's age leads to a decrease of $414 in its resale value.
6. There is a weak,negative linear relationship between a vehicle's age and its resale value.
7. 27% of the variability in age can be explained by the linear relationship betweenit's age and resale value.
8. There is a strong, negative linear relationship between a vehicle's age and its resale value.