Acreage and Value. The document Arizona Residential Property Valuation System, published by the Arizona Department of Revenue, describes how county assessors use computerized systems to value single-family residential properties for property tax purposes. On the WeissStats site are data on lot size (in acres) and assessed value (in thousands of dollars) for a sample of homes in a particular area. a. Obtain a scatterplot for the data. b. Decide whether finding a regression line for the data is reasonable. If so, then also do parts (c)–(f). c. Determine and interpret the regression equation for the data. d. Identify potential outliers and influential observations. e. In case a potential outlier is present, remove it and discuss the effect. f. In case a potential influential observation is present, remove it and discuss the effect.
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.
Acreage and Value. The document Arizona Residential Property Valuation System, published by the Arizona Department of Revenue, describes how county assessors use computerized systems to value single-family residential properties for property tax purposes. On the WeissStats site are data on lot size (in acres) and assessed value (in thousands of dollars) for a sample of homes in a particular area.
a. Obtain a
b. Decide whether finding a regression line for the data is reasonable. If so, then also do parts (c)–(f).
c. Determine and interpret the regression equation for the data.
d. Identify potential outliers and influential observations.
e. In case a potential outlier is present, remove it and discuss the effect.
f. In case a potential influential observation is present, remove it and discuss the effect.
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