The regression equation HomePrice = 102.6 + 5.2Income was estimated from a sample of 64 cities in the Western Province of Sri Lanka. Both variables are measured in thousands of rupees. HomePrice is the median selling price of homes in the city and Income is median family income for the city.

i. Interpret the slope.

ii. Is the intercept meaningful? Explain.

iii. Make a prediction of HomePrice when Income = Rs.100,000.

iv. Do you think that the above estimated regression equation is sufficient to explain the variations in HomePrice?