Dependent variable is: Value R-squared s = 4682 with 18 – 2 = 16 degrees of freedom 32.5% Variable Coefficient SE(Coeff) Intercept 37108.8 8664 Size 11.8987 4.290 72000 68000 64000 60000 56000 1800 2000 2200 2400 Size (sq ft) 4000 - 0+ -4000 Normal Scores 4000 -4000 57500 62500 Predicted ($) Assesed Value ($) Residuals ($) ($) sjenpisay
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.
Property assessments The software outputs below
provide information about the Size (in square feet) of
18 homes in Ithaca, New York, and the city’s assessed
Value of those homes.
Variable Count Mean StdDev Range
Size 18 2003.39 264.727 890
Value 18 60946.7 5527.62 19710
priate with these data.
pothesis and state your conclusion.
explained by this regression?
d) Give a 90% confidence interval for the slope of the
true regression line, and explain its meaning in the
proper context.
e) From this analysis, can we conclude that adding a
room to your house will increase its assessed Value?
Why or why not? *
f) The owner of a home measuring 2100 square feet files
an appeal, claiming that the $70,200 assessed Value is
too high. Do you agree? Explain your reasoning.
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