House price y is estimated as a function of the square footage of a house x and a dummy variable d that equals 1 if the house has ocean views. The estimated house price, measured in $1,000s, is given by yˆy^ = 118.90 + 0.12x + 52.60d. a-1. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 2,000. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.) a-2. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 3,000. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.) b-1. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 2,000. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.) b-2. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 3,000. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.)
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.
House price y is estimated as a
a-1. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 2,000. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.)
a-2. Compute the predicted price (in $1,000s) of a house with ocean views and square footage of 3,000. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.)
b-1. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 2,000. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.)
b-2. Compute the predicted price (in $1,000s) of a house without ocean views and square footage of 3,000. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.)
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