a) Interpret the slope and intercept of the model in context. b) Predict the selling price of a home with 1800 square feet. c) The correlation between the size of a home and its selling price is given by r=0.7. Explain what this means. d) Calculate ??2 and interpret its meaning in context.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The Terre Haute Association of Realtors conducts a study to examine the association between thesize of a home (in square feet) and the price the home sells for (in dollars). A regression model isthen created to predict the price based on the size of the home and is given by the followingequation: Price= -35000+110(size).
a) Interpret the slope and intercept of the model in context.
b) Predict the selling price of a home with 1800 square feet.
c) The
what this means.
d) Calculate ??2 and interpret its meaning in context.
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