The equation for the regression line that predicts mortgage amount using household income as the explanatory variable is \( \hat{Y}=4.2 X-74430 \) What is the interpretation of the slope? Pick What is the interpretation of the intercept? Pick

The slope of this regression line, which is 4.2, indicates that for every additional dollar increase in household income (X), the predicted mortgage amount (Y) increases by $4.20. This suggests that as families earn more, they can typically afford larger mortgage amounts, reflecting the direct relationship between income and mortgage capacity. The intercept of -74430 represents the estimated mortgage amount when household income is zero. While it might not be practical in real-world terms (since no one has an income of zero and has a mortgage), it can give insight into the baseline cost of a mortgage, accounting for factors other than income that might influence mortgage amounts, like location or credit history.