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Construct the 95% Prediction Interval Estimate for the actual  tax for one the house with an asking price of $400,000 and 50 years old, I have attatched the regression table and data below.

Construct the 95% Prediction Interval Estimate for the actual  tax for one the house with an asking price of $400,000 and 50 years old, I have attatched the regression table and data below.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Construct the 95% Prediction Interval Estimate for the actual  tax for one the house with an asking price of $400,000 and 50 years old, I have attatched the regression table and data below.

**Regression Analysis Overview** This regression analysis involves examining the relationship between variables through statistical measures and metrics. Below is a detailed transcription and explanation of the components visible in the analysis. --- ### Regression Statistics - **Multiple R:** 0.9915 - **R Square:** 0.9830 - **Adjusted R Square:** 0.9824 - **Standard Error:** 108.8113 - **Observations:** 61 *Interpretation:* - The Multiple R value, close to 1, indicates a strong correlation between the observed and predicted values. - The R Square value suggests that 98.30% of the variance in the dependent variable is explained by the model. ### ANOVA (Analysis of Variance) | Source | df | SS | MS | F | Significance F | |--------------|----|------------------|---------------|-----------|----------------| | Regression | 2 | 39731441.7245 | 19865720.8622 | 1677.8619 | 0.0000 | | Residual | 58 | 686714.3411 | 11839.9024 | | | | Total | 60 | 40418156.0656 | | | | *Interpretation:* - The high F-value with a significance level of 0.0000 indicates that the model is statistically significant. ### Coefficients and Statistics | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |---------------|----------------|----------|---------|------------|------------| | Intercept | -90.2166 | 113.1013 | -0.7977 | 0.4283 | -316.6134 | 136.1802 | | Asking Price | 9.2169 | 0.1716 | 53.7184 | 0.0000 | 8.8735 | 9.5604 | | Age | 2.5069 | 0.8994 | 2.7873 | 0.0072 | 0.7065 | 4.3073 | *Interpretation:* - The P-value for Asking
Transcribed Image Text:**Regression Analysis Overview** This regression analysis involves examining the relationship between variables through statistical measures and metrics. Below is a detailed transcription and explanation of the components visible in the analysis. --- ### Regression Statistics - **Multiple R:** 0.9915 - **R Square:** 0.9830 - **Adjusted R Square:** 0.9824 - **Standard Error:** 108.8113 - **Observations:** 61 *Interpretation:* - The Multiple R value, close to 1, indicates a strong correlation between the observed and predicted values. - The R Square value suggests that 98.30% of the variance in the dependent variable is explained by the model. ### ANOVA (Analysis of Variance) | Source | df | SS | MS | F | Significance F | |--------------|----|------------------|---------------|-----------|----------------| | Regression | 2 | 39731441.7245 | 19865720.8622 | 1677.8619 | 0.0000 | | Residual | 58 | 686714.3411 | 11839.9024 | | | | Total | 60 | 40418156.0656 | | | | *Interpretation:* - The high F-value with a significance level of 0.0000 indicates that the model is statistically significant. ### Coefficients and Statistics | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |---------------|----------------|----------|---------|------------|------------| | Intercept | -90.2166 | 113.1013 | -0.7977 | 0.4283 | -316.6134 | 136.1802 | | Asking Price | 9.2169 | 0.1716 | 53.7184 | 0.0000 | 8.8735 | 9.5604 | | Age | 2.5069 | 0.8994 | 2.7873 | 0.0072 | 0.7065 | 4.3073 | *Interpretation:* - The P-value for Asking
**Real Estate Data Summary** This table provides information on various properties, including their addresses, asking prices, yearly taxes, and ages. Below is a breakdown of the data presented: **Columns:** 1. **Address** - Specifies the location of each property. 2. **Asking Price** - The price at which the property is listed for sale, in thousands. 3. **Yearly Taxes** - The annual tax amount for the property. 4. **Age** - The number of years since the property was built. **Data Entries:** - **218 Windridge Acres Court**: - Asking Price: $450,000 - Yearly Taxes: $4,116 - Age: 23 years - **2424 White Horse Lane**: - Asking Price: $550,000 - Yearly Taxes: $3,004 - Age: 53 years - **14103 Eddington Street**: - Asking Price: $363,000 - Yearly Taxes: $3,422 - Age: 51 years - **2004 Gatewood Place**: - Asking Price: $550,000 - Yearly Taxes: $5,529 - Age: 38 years - **2503 Jaysgate Place**: - Asking Price: $463,000 - Yearly Taxes: $3,998 - Age: 35 years - **1305 Stonewheel Drive**: - Asking Price: $463,000 - Yearly Taxes: $4,302 - Age: 64 years - **317 West Avenue**: - Asking Price: $523,000 - Yearly Taxes: $3,686 - Age: 67 years - **25 Derbyton Avenue**: - Asking Price: $653,000 - Yearly Taxes: $4,386 - Age: 18 years - **6025 Galewood Drive**: - Asking Price: $493,000 - Yearly Taxes: $4,186 - Age: 50 years - **1201 Mulberry Drive**: - Asking Price: $503,000 - Yearly Taxes: $4,176 - Age: 42 years
Transcribed Image Text:**Real Estate Data Summary** This table provides information on various properties, including their addresses, asking prices, yearly taxes, and ages. Below is a breakdown of the data presented: **Columns:** 1. **Address** - Specifies the location of each property. 2. **Asking Price** - The price at which the property is listed for sale, in thousands. 3. **Yearly Taxes** - The annual tax amount for the property. 4. **Age** - The number of years since the property was built. **Data Entries:** - **218 Windridge Acres Court**: - Asking Price: $450,000 - Yearly Taxes: $4,116 - Age: 23 years - **2424 White Horse Lane**: - Asking Price: $550,000 - Yearly Taxes: $3,004 - Age: 53 years - **14103 Eddington Street**: - Asking Price: $363,000 - Yearly Taxes: $3,422 - Age: 51 years - **2004 Gatewood Place**: - Asking Price: $550,000 - Yearly Taxes: $5,529 - Age: 38 years - **2503 Jaysgate Place**: - Asking Price: $463,000 - Yearly Taxes: $3,998 - Age: 35 years - **1305 Stonewheel Drive**: - Asking Price: $463,000 - Yearly Taxes: $4,302 - Age: 64 years - **317 West Avenue**: - Asking Price: $523,000 - Yearly Taxes: $3,686 - Age: 67 years - **25 Derbyton Avenue**: - Asking Price: $653,000 - Yearly Taxes: $4,386 - Age: 18 years - **6025 Galewood Drive**: - Asking Price: $493,000 - Yearly Taxes: $4,186 - Age: 50 years - **1201 Mulberry Drive**: - Asking Price: $503,000 - Yearly Taxes: $4,176 - Age: 42 years
Expert Solution
Step 1: Write the given information

Given the data as

Yearly TaxesAsking PriceAge
4176450.029
5004539.052
2868309.065
5088549.043
4584494.054
3948425.055
3900419.956
4056437.535
4344468.957
3432369.959
5100550.069
3408368.081
4536489.062
3432369.963
3984332.0107
3900420.066
5520595.071
5208550.052
4068439.068
5424584.530
4176450.066
5292569.029
4272459.939
6216669.918
3876418.058
4356469.065
5376579.030
4452479.952
4452480.052
4308464.958
4272459.964
5748619.029
5556599.062
5568599.937
5424585.082
4644499.946
4680504.938
4452479.955
4968535.052
3936424.953
3480375.052
5088549.039
3204346.069
4176449.950
4968535.069
2508269.967
3576385.068
3708399.971
4644500.049
5472590.077
6492700.012
3528379.968
4548489.969
4800518.050
4032434.946
4080439.921
4176450.070
4920529.952
3336360.032
5796625.065
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