What is the y intercept in the model Does it have any real life meaning?

Answer 1

The answer to this question depends upon what is Y and what is X. For example if X is number of hours put forth and Y is the marks scored in exam, then if X = 0 hours, then the intercept gives the minimum marks a student would have scored even if s/he had not studied. This may come from his RAM memory.

If the Y = cost of tuition, X = number of hours of tuition, then if Y =50+90X, it says that for every one hour of tuition we pay rs. 90. But if I do not take tuition at all, i.e. at x =0, then why would any one pay Rs 50 as minimum tuition fee? Here is some problem in interpreting Y intercept.

if Y = subsidy received, and x = efforts putforth to receive subsidy in hours, then if Y = 50 + 90 X, then we say, for every hour of effort, the subsidy is Rs. 90. If we do not put any effort, the subsidy is Rs. 50. Here Y intercept may be difficult to understand.

if Y = subsidy received, and x = efforts putforth to receive subsidy in hours, then if Y = - 50 + 90 X, then we say, for every hour of effort, the subsidy is Rs. 90. If we do not put any effort, the subsidy is - Rs. 50. Here Y intercept may be difficult to understand. Can we say this as, if we do not put any effort, we are losing Rs. 50?